Theoretical relationship between economic growth and renewable energy consumption

This study aims to examine the theoretical relationship between renewable energy consumption and economic growth. Energy is a fundamental component of production processes in modern economies and plays a decisive role in determining countries' levels of development. As industrialization, urbanization, population growth, and technological advancements accelerate, energy demand continues to rise, making it essential to assess the nature, sustainability, and economic compatibility of energy resources. In this context, the study provides a comprehensive theoretical evaluation of renewable and non-renewable energy sources, economic growth theories, and the conceptual links between renewable energy consumption and economic growth. The first chapter discusses the conceptual and theoretical characteristics of renewable energy sources. The properties, application areas, sustainability dimensions, and economic significance of renewable resources such as solar, wind, hydroelectric, biomass, and geothermal energy are explained. The environmental implications of these resources, their contribution to energy security, and their ability to replenish through natural cycles enhance their importance from an economic perspective. In addition, the main features of non-renewable energy sources coal, oil, and natural gas are evaluated, and the theoretical distinctions between different types of energy resources are presented. The second chapter examines the concept of economic growth from a theoretical perspective. The definition of growth, its measurement methods, and the main approaches of classical, socialist, Keynesian, neoclassical, and endogenous growth models are discussed. In this chapter, the role of energy consumption in economic growth is examined theoretically through production factors, productivity, capital accumulation, and technological development. Furthermore, global trends in renewable energy investments, the transformation of international energy policies, and Türkiye's energy structure are conceptually analyzed. Türkiye's primary energy consumption, dependence on external energy sources, renewable energy potential, and national energy strategies are discussed within a theoretical framework. The third chapter presents a comprehensive theoretical discussion of the relationship between renewable energy consumption and economic growth. The mechanisms through which renewable energy can contribute to economic growth strengthening energy security, reducing long-term costs, enhancing economic diversification, supporting environmental sustainability, promoting technological innovation, and generating employment are evaluated. The potential effects of renewable energy use on economic structures are conceptually addressed in light of the main theoretical approaches in the literature. Overall, this study addresses the connection between renewable energy consumption and economic growth through a multi-dimensional theoretical framework. It establishes a conceptual link between the characteristics of energy resources, the main approaches of growth theories, and the potential effects of renewable energy consumption on economic systems. Accordingly, the study offers a theoretical contribution to the literature by demonstrating the importance of renewable energy sources in achieving sustainable development.