Modelling Turkey's Energy Consumption Based on Artificial Neural Network

Abstract

Energy plays a fundamental role in an economy. Turkey has the world's 15th largest GDP-Purchasing power parity and 17th largest Nominal GDP. Economists and political scientists classify Turkey as a newly industrialized country. In this study, an alternative model for Turkey’s energy consumption is proposed for the time between 1980 and 2004. Artificial neural network based model (ANN) is preferred as a forecasting tool. Gross domestic product (GDP), which is based on purchasing power parity, industrial production index and total population are utilized in the model. It is found that the energy consumption has direct relations with the Industrial Production Index. Moreover, population and GDP has causality effects.