Analysis of the effects of globalization on energy production in emerging market economies with multidimensional panel data models

Globalization and energy have a complex relationship that has significant impacts on each other. This relationship has a multidimensional feature that can affect all factors, from economic growth and development of countries to global energy markets, from technology transfers to investments, from environmental sustainability to geopolitical dynamics. In this study, it is aimed to examine the relationship between globalization, energy production from fossil and renewable energy sources by using a multidimensional panel data model, according to time, countries, income groups and geographical locations, and to reveal the effects of globalization on energy production from different energy sources. The relationship between globalization and energy production in 26 emerging market economies, including Turkey, for the period 2000 2015 was analyzed with two different multidimensional panel data models: country income group over time and country-continent group over time, and the results were compared. The results show that, specific to the income group, globalization has a positive and significant effect on energy production from nuclear and renewable sources, while it negatively affects energy production from hydroelectric sources. On the other hand, in the multidimensional panel data model analysis made specifically for the continent group, globalization has a positive effect on energy production from coal and hydroelectric resources, while the relationship between globalization and energy production from natural gas resources is negative. According to these results, it is concluded that countries have different income levels and/or are located in different geographical locations and globalization affects the energy production from non-renewable and renewable energy sources at different levels.