The impact of renewable energy on macroeconomic variables

Energy is generally defined as the ability to do work. Energy, which has become one of the most basic requirements from the past to the present, has become indispensable for the world and has started to be used in many different areas such as cooking food, heating and cooling activities in houses, using electronic devices, transportation, communication and industrial activities. Although the energy resources, which are an area benefited from in the civilization of societies, are quite scarce, the fact that other materials are also sources of energy with the possibilities of science and technology has diversified the energy resources. Although there are many classifications of energy sources, they are divided into two categories: energy sources according to their use and energy sources according to their convertibility. According to their use, energy sources are divided into two as non-renewable and renewable energy sources. Non-renewable energy sources consist of fossil fuels that can renew themselves in the long term that can be described as disposable and are divided into three as coal, oil and natural gas. Renewable energy sources, on the other hand, can be defined as an energy source that is unlimited in nature and that is constantly formed. Renewable energy sources are divided into seven subgroups: hydraulic, solar, wind, geothermal, biomass, wave and tidal, hydrogen. It is known that fossil fuels are used mostly in energy production in the world. At the same time, when we look at the reserves of non-renewable energy resources in the world, researches tell us that oil will last for 40 years, natural gas for 62 years and coal for 216 years. Most of the countries are dependent on foreign energy for reasons such as the renewal period of non-renewable energy sources takes centuries in nature and their distribution is unequal in the world. In order to prevent this, the use of renewable energy sources provides advantages to countries. The increase in the use of renewable energy resources in a country will contribute to the production of new goods economically, thus increasing the production process and the growth of the country. The establishment of new facilities will also contribute to the creation of new job opportunities and will help reduce unemployment. In terms of environmental factor, the fact that renewable energy sources are completely nature-friendly is another important advantage in terms of preventing the increase of air pollution. In this thesis, our aim is to investigate the effects of renewable energy on macroeconomic variables by using panel data analysis method in certain high-income and middle-income country groups. In this context, growth, foreign trade (exports, imports) and unemployment are discussed as macroeconomic variables. According to the results of the analysis, while the effect of the use of renewable energy sources on unemployment in high-income countries is insignificant, it has been found to have a positive effect on exports and imports and a negative effect on growth. In middle-income countries, the effect of the use of renewable energy sources on growth is insignificant, while the effect on unemployment is positive and the effect on exports and imports is negative.