Abstract:

It is known that there is a very close relationship between economic development and growth and investment. It is necessary to provide sufficient internal savings to make sustainable investments necessary for Turkey to its sustainable development objective. Especially because it is externally dependent on energy, Turkey’s trade balance is open every year and therefore domestic savings remain insufficient for investment. In this study, it has been investigated how the direction of Turkey to local renewable energy sources will impact savings. The analysis used tools such as the ratio estimate (FMOLS-DOLS) between electricity produced from renewable energy sources (kwh) and net domestic savings (US$) and causality test. The results of the analysis; a one-way, long-term positive causal relationship from renewable energy to savings has been identified. According to this, the increase in the amount of 1 unit of electricity produced from renewable energy sources has been shown to increase by 0.36% of the Real Net Domestic Savings. This result demonstrates that renewable energy production has a great impact on national savings and therefore on economic growth.

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