The relationship between financial development and renewable energy production: The case of G20 countries

The requirements of the increasing population of our world are being fulfilled by the economic growth of the countries. Providing the energy demand with sensitive to environment by being sensitive to the environment is one of the basic conditions in terms of sustainability. The main purpose of this study is to reveal the relationship between the renewable energy production of countries and the symbols of their financial development and economic growth. In the 20th century, when the countries began to be managed as companies in terms of effective and efficient use of energy and financial resources, the increasing need for energy increased with the tendency towards fossil fuels and nuclear energy, while increasing pollution became a source of concern. The Kyoto Protocol, which was signed in 1997, is an important milestone that directs countries to renewable energy sources against increasing pollution. In this study, G20 countries which represent a significant part of the world population and economy are examined. The relationship between domestic credits to private sector, gross domestic product amounts which are one of the important cause and effect indicators of financial development and renewable energy production, were examined for the period between 2001 and 2016. Findings obtained from the research, cointegration between the variables was clearly seen. However, no causal relationship was found between the studied variables.