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The Impact of R&D Expenditures on Regional Energy Intensity in Turkey

Author

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  • Yahya Algül

    (Department of Economics, Faculty of Economics and Administrative Sciences, Erzurum Technical University, Erzurum, Turkey)

  • Deniz Erenel

    (Department of Economics, Faculty of Economics and Administrative Sciences, Erzurum Technical University, Erzurum, Turkey)

Abstract

Energy efficiency measures are effective solutions for addressing environmental and economic issues, including global warming, energy supply security, and trade deficits from imported energy sources. Turkey through an ambitious policy scheme in the last decades, have reduced energy intensity level significantly, though, still higher than developed countries. In this regard, this study investigates the relationship between R&D expenditures and energy intensity in Turkey through NUTS-I regional data ranging from 2010 to 2021. According to both FMOLS and DOLS technique findings increasing R&D expenditures may significantly decrease energy intensity. Furthermore, economic growth appears to correlate with reduced energy intensity. Additionally, FMOLS findings suggest that industrialization may increase energy intensity, while DOLS results indicate that population growth can also significantly increase energy intensity. Therefore, a customized research and development (R&D) incentivization support system could offer various benefits to Turkey and other developing nations facing similar challenges.

Suggested Citation

  • Yahya Algül & Deniz Erenel, 2024. "The Impact of R&D Expenditures on Regional Energy Intensity in Turkey," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 546-557, September.
    • Handle: RePEc:eco:journ2:2024-05-56
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    More about this item

    Keywords

    Energy Efficiency; Energy Intensity; Research and Development; Global Warming; Turkey;
    All these keywords.

    JEL classification:

    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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