Modeling of renewable energy supply: A sectoral analysis for Turkey

The increasing demand for energy, which is the main input of the production process, and the increasing demand to be met through fossil fuels have become one of the most discussed topics in the global arena due to the pressures it creates on the environment. While solutions such as green growth or non-growth have been proposed to eliminate environmental pressure, another alternative has been to increase the share of renewable resources in energy use. Hence, this study focus why renewable resources is superior to fossil fuels and while there is a transformation towards renewable energy in the world, Turkey's place in the global area that the use of energy resources and energy policies that have been demonstrated by a comparative perspective. It is empirically tested whether the energies used differ from (decoupling effect) sector growths in other words whether growth exerts pressure on resources in sectoral transformation process in Turkey. It has also empirically tested whether there is a convergence relationship between energy sources on a sectoral basis, if any, whether this relationship is realized through fossil or renewable resources. Decoupling index results shows that it has a relative decoupling effect generally in the sectors. The panel data analysis results showed that there is a partial convergence between the sectors and the structural break unit root analysis results show that this partial convergence is realized through fossil fuels used in the sectors. These findings indicates that the renewable energy policies in the country are compatible with EU and OECD policies in theory, but insufficient at the point of implementation. In this context, it is considered that to investigate why these policies are not successful such as union member countries, to concentrate energy supply resources to renewable resources, the necessary financing support for renewable resources should be extended through policies where the state is pioneering and the private sector is supportive and ensuring the sustainability of policies, limiting the pressure created by fossil fuels on the environment through environmental taxes and the public sector's research and development share for clean technologies should be rearranged. Keywords: Energy Sources, Renewable Energy, Sustainability, Decoupling, Sector-Resource Analysis, Convergence Analysis