Renewable energy current account deficit and savings relationship: Selected EU countries and Turkey panel data analysis

In today's world, the current account deficit and energy crises caused by the increasing need for energy and the disproportionate distribution of fossil fuels, which are largely used in line with this need, have pushed economies to seek both energy savings and an alternative energy production. Therefore, in line with this quest from past to present, renewable energy types have been on the agenda within the scope of alternative energy. Based on this area, the effects of a large number of energy consumption and production on macroeconomic variables have been investigated in studies on country groups. However, rare studies on saving have been encountered. In this study, based on the period covering the years 1990-2015, it is investigated whether there is a causal relationship and the effect of renewable energy consumption, renewable energy production and fossil fuel production on savings and current account deficit of 20 EU countries and Turkey. Accordingly, to test the stability of the series, Pesaran (2007), 2. Generation unit root (CIPS) test, Hausman test to predict accurate models in the study, Stochastic Effects GLS Regression were predicted to observe the effects of independent variables on dependent variables. Kao (1999) cointegration test was used to determine the relationship between variables and Dumitrescu-Hurlin (2012) Causality test was used to test the existence and direction of causality relationship between variables. Empirical results; From DREC, DREP and DFEP to DCID and DGSYT 2. Considering the level of latency, it is observed that there is one-way causality. In other words, renewable energy consumption, renewable energy production and fossil energy production are the reasons for the Current Account Balance. Renewable energy production, consumption and fossil energy production 2. The level of latency is the cause of each other. Therefore, according to the results of the analysis, renewable energy production and consumption have a positive impact on savings and the current account deficit.