Economic analysis of energy efficiency in Turkey in the context of sustainable development

Due to the rise of globalization after the Industrial Revolution, the increase of unconscious consumed resources has threatened to leave a livelier environment for future generations. With industrialization, this type of disruption has raised the idea of thinking about future generations as well as meeting the needs of today's generation. With this idea, sustainable development has emerged as a model that considers the human and the environment. Energy has been one of the most important elements of the economic growth and development process. It is known that today's reserves of fossil resources are not infinite. In addition, with the technological developments, the energy needs of developing countries have increased considerably. When alternative energy sources are not used, it seems clear that there will be a worldwide problem of energy consumption. Therefore, it is important that energy is produced and used efficiently. This study includes the concept of energy effiency for sustainable development. And the current study investigates the causal relationship between economic growth and energy consumption context of energy effiency in Turkey between 1961 and 2014. Granger causality test is used to examine the causal relationships between economic growth and energy consumption. Empirical evidence shows that, based on the Granger Causality Test, there is onedirectional Granger causality exists between economicgrowth and energy consumption, results indicate that the energy consumption cause real GDP, which can explain the role of energy consumption in stimulating economic growth in Turkey.