Electric energy is very important both technologically and economically in today's countries. Countries can generate and consume more energy according to their level of development and the resources they have. In the literature, it is estimated in parallel with the development of countries; there will also be an increase in electrical energy generation and consumption. Similarly, in economies that generate and consume more electricity, it is assumed that this will affect their economic growth. But these assumptions need to be calculated econometrically. This study has been prepared for this purpose. In this study, the relationship between electricity generation, electricity consumption, and economic growth in Turkey was analyzed. In the analysis conducted for the period 1975-2019, the Toda-Yamamoto causality test method was preferred as the method. As a result of the analysis, it was determined that there is a causal relationship from electricity consumption and electricity generation to economic growth, valid for the period 1975-2019 in Turkey.
TopIntroduction
Whether there is a relationship between energy consumption (EC), energy generation (EnG) and economic growth (EG) is a topic that has been debated in the economic literature for many years. Especially with new econometric models included in the literature along with developing technology and scientific research, the number of studies on this subject is increasing (Xie et al., 2021). Of course, the lack of consensus in the literature on whether this relationship exists is also effective in experiencing this situation. The most intriguing issue among economists is whether EG comes before EC-EnG or whether energy affects EG (Acaravcı and Öztürk, 2010). In other words, the direction, source and effects of this relationship represent the main research area of the studies in the literature.
Energy has an important place in the economy in terms of both supply and demand. This importance stems from the structural interconnection of the energy sector with other sectors of the economy. Energy is a necessary input to be used in production and to increase the welfare of societies. Energy affects the development levels of countries and has a serious impact on determining the international policies of countries (Zhao et al., 2021; Liu et al., 2021). For this reason, the relationship between EC and especially electricity energy consumption (EEC) and EG has been a topic that has been debated among scientists for years (İsmiç, 2015). Especially with today's developing technology and increasing needs, it is possible to say that there is more interest in discussing this issue,
As can be guessed, the concept of energy expresses a collective meaning. In other words, energy consists of a number of components. When we examine energy by separating it into its components, it is claimed that electricity is the best quality energy component and its share in EC is increasing rapidly. (Karagöl, Erbaykal and Ertuğrul, 2007). The most important reason for this is that electricity can be generated from all primary energy sources. What these primary sources are will be explained later in the study. In addition, EEC is considered to be one of the most important indicators of the development level of countries with its characteristics such as being able to transmit electrical energy easily, be divided into desired amounts, not creating environmental pollution, demand at every stage of daily life and being an indispensable source in parallel with technological progress (Akbaş and Şentürk, 2013; Saatçi and Dumrul, 2013). Because, according to the general opinion, it is accepted that the energy demand will increase with the increasing prosperity.
As a result of the dynamics of the electrical energy sector, it is both affected by developments in other sectors and affects developments in other sectors. The main reason for this situation is that the electrical energy sector is a sector that provides large amounts of input to other sectors in the economy (Berberoğlu, 1982). The insufficiency of the electricity supply, which should increase in parallel with the EG to meet the demand, not only negatively affects the EG but also prevents the energy supply from creating a stimulating effect on the economy (Özdemir and Yüksel, 2006). Despite the important advantages of electrical energy, there are some drawbacks. The most important of these is that this source is an energy source that must be consumed as soon as it is generated since the storage facilities are very limited and very expensive. Consequently, EEC follows a course parallel to its generation (Akan and Tak, 2003).