Do Increases and Decreases in Non-renewable Energy Consumption Have the Same Effect on Growth in Türkiye?

Abstract

This study examines the relationship between fossil energy consumption (FEC) and economic growth by applying the non-linear ARDL method in the Türkiye sample. This relationship was addressed in 3 different models to eliminate the multicollinearity between the oil, natural gas, and coal variables that make up the FEC. According to the analysis results, all models have an asymmetric cointegration between the variables. In all models, the effect of decreases in energy consumption on economic growth is more dominant than increases in the long run. According to the causality results, the neutrality hypothesis is valid for coal consumption, the feedback hypothesis is valid for natural gas consumption, and the growth hypothesis is valid for oil consumption.