Tthe relationship between exchange rate and production of renewable energy in Turkey and its effects on the balance of international trade

Energy has always been needed in terms of continuity of life, economic growth, social and environmental aspects, and it continues to be needed today. In daily life, as well as in production, imports, and exports; the lack of resources and the increase in energy demand have led to conflicts between countries from time to time. That is because energy means production, export, economic growth, and power. Today, with the development of technology, clean, inexhaustible, and lower-cost energy sources have started to be favored over fossil sources. Renewable energy sources, which are easy to access and easily convertible into energy are still being used efficiently every day thanks to the incentives provided. (Olcar,2010). Countries like Turkey, whose existing energy reserves are not sufficient to meet the current need and have to import it, are foreign-dependent countries in energy. Economic growth, current account deficit, and energy imports get trapped in a compelling cycle due to high foreign dependency on energy. Importing most of the energy needed leads to an increase in the current account deficit. In this study, the effects of net energy imports on economic growth, foreign trade balance, and current account deficit, under the effect of renewable energy production and exchange rate, were investigated by using Turkey data between 2001 and 2022. As a result of the analyzes made using unit root, ARDL, and causality tests, it has been observed that the dollar exchange rate value does not have a significant effect on the amount of imported energy, but there is an inverse relationship between renewable energy production and the amount of imported energy, both in the short and long term. Increasing renewable energy production in our country will contribute to the reduction of our country's current account deficit in the long term by reducing our net energy imports.