DOI :10.26650/B/SS10ET27.2024.008.04   IUP :10.26650/B/SS10ET27.2024.008.04    Full Text (PDF)

Energy Consumption and Economic Growth

Muhammet Enes ÇıraklıHuzeyfe Torun

Energy trade is among the most important determinants of the current account balance around the world. Türkiye as a developing country with relatively low level of energy sources and with reasonably high growth rates, is dependent on energy imports. Unlike the previous decades, high dependency on energy is not a critical matter for only current account balance but also for the sustainability of the environment and greenness of the economy. Since most of the energy imports originate from non-renewable sources and the domestic investments tend to utilize renewable ones, for a given economic growth level in Türkiye, the reduction of energy imports and sustainability of the environment are complementary. In this study, we first point to the positive relationship between economic growth and overall energy consumption in Türkiye. Next, we provide descriptive statistics suggesting that this relationship has been weakening in recent periods. More concretely, the energy intensity indicator that is calculated through dividing Türkiye’s energy consumption by its real GDP has been declining over years. Finally, we explore the same relationship for a high number of countries using data from World Bank and British Petroleum (BP) databases; and look at the relative change in the energy intensity of economic growths across the world. We conclude that there is even more room for improvement in this dimension for Türkiye which may eventually lead to a better current account balance and a more sustainable environment in the future.


  • Adaman, F., Karalı, N., Kumbaroğlu, G., Or, İ., Özkaynak, B., & Zenginobuz, Ü. (2011). What determines urban households’ willingness to pay for CO2 emission reductions in Turkey: A contingent valuation survey. Energy Policy, 689-698. google scholar
  • Akarca, A., & Long, T. (1980). On the Relationship between Energy and GNP: a Reexamination. Journal of Energy and Development, 326-331. google scholar
  • Altınay, G., & Karagöl, E. (2004). Structural Break, Unit Root, and The Causality between Energy Consumption and GDP in Turkey. Energy Economics, 985-994. google scholar
  • Aqeel, A., & Butt, M. (2001). The Relationship between Energy Consumption and Economic Growth in Pakistan. Asia Pasific Development Journal, 101-110. google scholar
  • BP. (2021, 11 12). British Petroleum. Retrieved from BP: google scholar
  • Chang, T., Deale, D., Gupta, R., Hefer, R., Inglesi-lotz, R., & Simo-Kengne, B. (2017). The Causal Relationship between Coal Consumption and Economic Growth in the BRICS Countries: Evidence from Panel-Granger Causality Tests. Energy Sources, 138-146. google scholar
  • Erol, U., & Yu, E. S. (1987). On the Relationship between Energy and Income for Industralized Countries. Journal of Energy and Employment, 113-122. google scholar
  • European Commission. (2023, 8 27). Climate Action. Retrieved from European Commission: google scholar
  • Georgeson, L., Maslin, M., & Poessinouw, M. (2017). The global green economy: a review of concepts, defini-tions, measurement methodologies and their interactions. Geography and Environment, 1-23. google scholar
  • Gyimah, J., Xilong, Y., Tachega, M. A., & Hayford, I. S. (2022). Renewable Energy Consumption and Economic Growth: New Evidence from Ghana. Energy. google scholar
  • Jumbe, C. D. (2004). Cointegration and Causality between Electricity Consumption and GDP: Empirical for Malawi. Energy Economics, 61-68. google scholar
  • Kraft, J., & Kraft, A. (1978). On the Relationship Between Energy and GNP. Journal of Energy and Develop-ment, 401-103. google scholar
  • Liddle, B., Parker, S., & Hasanov, F. (2023). Why has the OECD long-run GDP elasticity of economy-wide electricity demand declined? Because the electrification of energy services has saturated. Energy Economics. google scholar
  • MENRoT. (2023). Ulusal Enerji Verimliliği Eylem Planı. Enerji ve Tabii Kaynaklar Bakanlığı Enerji Verimliliği Çevre Dairesi Başkanlığı. google scholar
  • OECD. (2012). Green Growth and Developing Countries A Summary for Policy Makers. OECD. google scholar
  • OECD. (2023, 8 28). Green growth and sustainable development. Retrieved from OECD: https://www.oecd. org/greengrowth/ google scholar
  • Salari, M., Javid, R. J., & Noghanibehambari, H. (2021). The Nexus between CO2 Emissions, Energy Consump-tion, and Economic Growth in the US. Economic Analysis and Policy, 182-194. google scholar
  • Soytaş, U., & Sarı, R. (2003). Energy Consumption and GDP: Causality Relationship in G-7 Countries and Emerging Market. Energy Economics, 33-37. google scholar
  • Soytaş, U., & Sarı, R. (2004). Disaggregate Energy Consumption, Employment and Income in Turkey. Energy Economics. google scholar
  • ten Brink, P., Mazza, L., Badura, T., Kettunen, M., & Withana, S. (2012). Nature and Its Role in the Transition to A Green Economy. The Economics of Ecosystems and Biodiversity. google scholar
  • UN. (2023). Technology and Innovation Report 2023. New York: United Nations Conference on Trade and Development. google scholar
  • UN. (2023, 8 26). United Nations Climate Action. Retrieved from Causes and Effects of Climate Change: https:// google scholar
  • UN. (2023, 8 7). United Nations Conferences on Climate Change. Retrieved from United Nations: https:// google scholar
  • UN. (2023, 8 27). The Paris Agreement. Retrieved from United Nations Climate Change: process-and-meetings/the-paris-agreement google scholar
  • UN . (2023, 8 27). What is the Kyoto Protocol? Retrieved from United Nations Climate Change: https://unfccc. int/kyoto_protocol google scholar
  • World Bank. (2012). Inclusive Green Growth. Washington: The World Bank. google scholar
  • World Bank. (2022, 7 6). World Bank. Retrieved from google scholar
  • World Bank. (2023, 8 28). Green Growth for Sustainable Development. Retrieved from The World Bank: https:// google scholar


Istanbul University Press aims to contribute to the dissemination of ever growing scientific knowledge through publication of high quality scientific journals and books in accordance with the international publishing standards and ethics. Istanbul University Press follows an open access, non-commercial, scholarly publishing.