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Threshold Effects of Energy Consumption on Economic Growth in Turkey

Author

Listed:
  • Celil AYDIN

    (Department of Economics Faculty of Economics and Administrative Sciences Mu Alparslan University)

  • mer ESEN

    (Department of Economics Faculty of Economics and Administrative Sciences Mu Alparslan University)

Abstract

In this study the relationship between energy consumption and economic growth and the effect of energy intensity level on this relationship are investigated for the period 1975 2013 for Turkey using recently developed Threshold Autoregressive TAR Models that provide appropriate procedures for estimation and inference Although the majority of studies in the relevant literature support the view that energy consumption may promote economic growth the empirical findings based on the estimation of the threshold model reveal evidence of threshold effects related to the energy consumption in Turkey According to the analysis results estimated value of the threshold is 0 191 for energy intensity level The findings indicate that an energy consumption rate above the threshold energy density level adversely affects economic growth and a consumption rate below the threshold level positively affects economic growth These results show that when the optimal levels of energy density which is one of the important indicators of energy efficiency are exceeded energy consumption considerably hinders economic growth In this regard political authorities and decision makers should not ignore threshold levels within the context of energy density while determining energy policies This is because this condition has a fundamental role in both increasing the effectiveness of implemented economic policies and realizing sustainable economic growth which has a significant place in stability

Suggested Citation

  • Celil AYDIN & mer ESEN, 2016. "Threshold Effects of Energy Consumption on Economic Growth in Turkey," Journal of Advanced Research in Management, ASERS Publishing, vol. 7(3), pages 370-382.
    • Handle: RePEc:srs:jemt00:v:7:y:2016:i:3:p:370-382
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    Cited by:

    1. Wang, Wei & Wu, Fengping & Li, Cunfang, 2021. "Relationship between cross-regional transfer and the environment based on the coal enterprises in China," Resources Policy, Elsevier, vol. 73(C).
    2. Yu, Yang & Guo, SongLin & Chang, XiaoChen, 2022. "Oil prices volatility and economic performance during COVID-19 and financial crises of 2007–2008," Resources Policy, Elsevier, vol. 75(C).
    3. Celil Ayd n & mer Esen, 2017. "Does Too Much Energy Consumption Harm Economic Growth for Turkish Republics in The Transition Process? New Evidence on Threshold Effects," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 34-43.
    4. Aydin, Celil & Esen, Ömer, 2018. "Does the level of energy intensity matter in the effect of energy consumption on the growth of transition economies? Evidence from dynamic panel threshold analysis," Energy Economics, Elsevier, vol. 69(C), pages 185-195.
    5. Olusola Joel Oyeleke & Taiwo Akinlo, 2020. "Energy generation and economic growth: empirical evidence from Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(8), pages 7177-7191, December.

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