Effect on growth of carbon emissions and energy consumption: In Turkey

Economic growth has been a subject on which theories have been produced and analyzed from past to present. In this case, factors affecting economic growth got involved and researches were conducted on these issues. Energy resources have also played an important role in economic growth and development from past to present. With the development of societies and globalization, consumption has increased along with the energy demand. Because of the fossil fuels people consume for their energy needs, carbon dioxide concentrations are often increasing. With the increase of global warming, measures and sanctions started to be applied at the international level. The aim of this is to reveal the effect of energy consumption and carbon emissions on economic growth in Turkey. For this purpose, the effects of energy consumption and carbon emissions on economic growth are discussed both practically and theoretically. The thesis consist of four parts. In the first chapter, energy resources and the concept of energy is discussed. In the second part, the steps taken in the international arena in struggling carbon emissions and climate change and as a result of these steps the issues related to carbon pricing were discussed. In the third chapter, sources of economic growth and economic growth models are given. In the fourth chapter, the relationship between these variables is disscussed. In this study, Turkey's 1980-2019 data were used to examine the relationship between these variables. It was determined that all variables whose stationarities were tested by ADF and PP Unit root test were stationary in the first order. It was found that there is a cointegration and there is a long-term relationship between the series with the Johansen Cointegration Test. Finally, Granger Causality Test was applied to determine the direction of causality between variables, and it was determined that energy consumption has a statistical significance level of 10% on growth and that carbon emission has one-way causality on economic growth at a statistical significance level of 1%. Keywords: Energy Consumption, Carbon Emission, Economic Growth, Turkey