Abstract:

The relationship of renewable energy consumption with economic growth has become a topic of attention especially recently. The increase of fossil fuels in global warming and greenhouse gas emissions increases the importance of renewable energy sources that are more environmentally friendly. Therefore, this study aims to identify the relationship between renewable energy consumption and economic growth in India. For this purpose, India’s 1990-2015 period has been using non-clean domestic revenue, renewable energy consumption, fixed capital formation and labour data. In the study, the first unit root tests were tested with the stops of the series. Then, the ARDL Border Test and the ratio forecast were made. Finally, the relationship between the VECM Causal Test and the variables was detected in a long and short period of time. The findings show that the hypothesis of reflection between renewable energy and economic growth in the short term is valid. For a long time, it has been found that the reverse hypothesis is valid. Therefore, it is believed that policy decisions on renewable energy consumption in India should be determined taking into account the feedback effect on economic growth in the long term.

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