The relationship between traditional and renewable energy consumption and GDP

Energy is a fundamental requirement for sustainable development and economic growth. Every country needs energy input in order to produce and continue production. Conventional and renewable energy affect Gross Domestic Product (GDP) differently in terms of both cost and efficiency. The aim of this thesis is to examine the effect of traditional (primary) and renewable (alternative) energy consumptions of developed, developing and underdeveloped countries on GDP. The study covers the years 2010-2019 and uses data from a total of 112 countries, including 29 developed, 61 developing and 22 less developed countries. According to the findings obtained from the study, it has been determined that the consumption of traditional and renewable energy sources of developed, developing and underdeveloped country groups has a positive effect on GDP. However, the positive effect of renewable energy consumption is less than that of traditional energy sources. In addition, it has been observed that the effect of traditional energy consumption on GDP decreases as the level of development increases.