Energy Production and Economic Growth: A Causality Analaysis for Turkey Based on Computer

Abstract

High levels of energy prices and the promise of international initiatives on decreasing the greenhouse gas emissions have regenerated the argument about the execution of energy conservation policies. This paper investigates the causal relationship between aggregated and disaggregated levels of energy production, energy demand, energy import and economic growth for Turkey for the period of 1975–2007. The relationship between the energy production, energy demand, energy import and Gross Domestic Product is examined. To this end, Engle-Granger cointegration, Error Correction Model and Granger causality tests are applied in order to determine the aforementioned relation. It is found that the energy production has direct relationship with the GDP and it has causality effects.