The Renewable Energy Consumption-Economic Growth Nexus in Turkey

Energy has been a significant production factor for all countries. Turkey’s energy demand has been increasing due to economic and population growth. Turkey’s energy dependency on import is high. For this reason, it is important to take into account increasing energy demand and import dependency that determines the causal relationship between energy consumption and economic development. This study examines the causal relationship between renewable energy consumption and economic growth in Turkey by using the nonlinear Granger causality analysis. The annual data from 1990 to 2015 were obtained from the World Bank Indicators. The empirical results support that the neutrality hypothesis is valid for Turkey and indicate that renewable energy consumption and economic growth are not sensitive to one another in a given time.