Do environment-related technologies, urbanization, trade openness, and income impact energy consumption and intensity?

Abstract

The link between energy and economic growth has been investigated for several nations and periods. Today, with global warming, it has been emphasized that governments should focus on energy policies by considering an environmentalist approach to energy use, and it has been observed that many researchers are now examining issues such as ecological footprint and reduction of carbon emissions in energy-related studies. This study aims to include clues about how Türkiye, a foreign-dependent country in energy, should follow its energy policies. For this purpose, the relationship between energy consumption, environmental technologies, energy intensity, GDP (Gross Domestic Product) per capita, urbanization, and trade openness for Türkiye (1980–2020) is examined by Fourier ARDL (Auto-Regressive Distributed Lags) cointegration and Fourier Toda-Yamamoto causality tests, which take into account structural breaks. According to the results, there is a bidirectional causality relationship between energy intensity and environment-related technologies. There is also a bidirectional relationship between energy consumption and energy intensity. Turkish policymakers should prioritize green and sustainable approaches to increasing industrial energy efficiency.