The Relationship Between Renewable Energy and Economic Growth: 1990-2017 The Case Of Turkey

Along with the rapid rise in today’s energy consumption, the scarcity of conventional energy resources have encouraged countries to change their energy production policies and to use alternative energy resources. For this purpose, the relationship between the use of renewable energy and economic growth in Turkey and the direction of the relationship is examined over the period 1990-2017 via Bayer-Hanck co-integration test and Toda-Yamamoto causality test in the study. The analysis results indicate that the variables are cointegrated in the long-run, and a 1% rise in renewable energy use would increase the economic growth by 0.19%. According to the results of causality test which is performed in order to identify the direction of the relationship whose existence is also tested, there is a unilateral causality running from economic growth toward renewable energy use, and therefore, conservation hypothesis is valid for Turkey