THE CAUSALITY RELATIONSHIP BETWEEN RENEWABLE ENERGY CONSUMPTION AND ECONOMIC GROWTH: EVIDENCE FROM TURKEY

Oil, natural gas and coal, which are the primary energy sources in the Middle East - whose majority, in general, are experiencing political instability, are rapidly depleting. High dependence on consumable resources indicates that you will face the problem of energy supply security in the near future. The fact that Turkey, which has a high potential of renewable energy, will focus its economy on green economy and renewable resources will have both a risk of energy supply security and a current deficit. In this study, the causality relationship between per capita gross domestic product (GDP) and per capita renewable energy consumption (including hydropower) for the period 1980-2015 was examined by means of time series analysis. Firstly, ADF and Zivot-Andrews unit root tests were applied to the series and they were found to contain unit root in level values. The series are stationary in the first difference. The results of the ARDL bound test showed that the variables were co-integrated at a level of significance of 5%. Toda-Yamamoto causality test was applied to cointegrated series and it was found that unilateral causality relationship from renewable energy consumption to growth These results show that increases in renewable energy consumption will provide economic growth