Abstract:

Today, energy is used in every field, and the need for energy is increasing day by day due to population growth and industrialization. The increase in energy consumption causes imbalances between the production and consumption of primary (non-renewable) energy resources. As a solution, importing energy causes a current account deficit and has a negative impact on economic growth. It is thought that the steady continuation of investments in renewable energy sources will increase economic growth by reducing foreign dependency. When the literature studies are examined, there are not many studies that use different methods together on the causality between energy and economic growth. These studies generally address causality with a single approach. In this study, the causal relationship between renewable and non-renewable energy sources and economic growth is investigated for 1993-2020 periods. In this framework, firstly, unit root tests with and without structural break are used. Then, causality tests such as Granger, Breitung-Candelon, Toda-Yamamoto, Hacker-Hatemi-J and Hatemi-J are used depending on the stationarity structure of the variables. As a result of many tests applied in our study; It has been found that there is bidirectional causality in the whole energy context, from economic growth to non-renewable energy for non-renewable energy and from renewable energy to economic growth for renewable energy.

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