<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Energy plays a vital role in every aspect of the economy and in recent years renewable energy is highly debated for its pros and cons. While renewable energy consumption is important for sustainable growth and reduction of environmental damage it has some negative effects on the industrial production. The aim of the study is to examine the relationship between renewable energy consumption, financial development and industrial output for Turkey. Annual data between 1980 and 2019 were used in the study. Fractional Fourier Augmented Dickey-Fuller Unit Root Test and the Fourier Autoregressive Distributed Lag Bound Tests were used to analyze the relationship between variables. As a result of the study, a positive relationship was found between financial development and renewable energy consumption, while a negative relationship was found between industrial output and renewable energy consumption. Our empirical findings have important policy implications. According to these policy implications, the focus should be on a green-based economy with various subsidies, selective taxation procedures and incentive policies to increase the demand for renewable energy use.</p>
</abstract>

Energy plays a vital role in every aspect of the economy and in recent years renewable energy is highly debated for its pros and cons. While renewable energy consumption is important for sustainable growth and reduction of environmental damage it has some negative effects on the industrial production. The aim of the study is to examine the relationship between renewable energy consumption, financial development and industrial output for Turkey. Annual data between 1980 and 2019 were used in the study. Fractional Fourier Augmented Dickey-Fuller Unit Root Test and the Fourier Autoregressive Distributed Lag Bound Tests were used to analyze the relationship between variables. As a result of the study, a positive relationship was found between financial development and renewable energy consumption, while a negative relationship was found between industrial output and renewable energy consumption. Our empirical findings have important policy implications. According to these policy implications, the focus should be on a green-based economy with various subsidies, selective taxation procedures and incentive policies to increase the demand for renewable energy use.

Financial Development, Renewable Energy Consumption and Industrial Output Relation: Testing Fourier ARDL for Turkey

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Energy plays a vital role in every aspect of the economy and in recent years renewable energy is highly debated for its pros and cons. While renewable energy...

Financial Development, Renewable Energy Consumption and Industrial Output Relation: Testing Fourier ARDL for Turkey

Published Online: May 21, 2024

Page range: 97 - 117

DOI: https://doi.org/10.2478/sbe-2024-0006

Keywords
Fourier ARDL, Financial Development, Renewable Energy Consumption, Industrial Output

© 2024 Cüneyt Kiliç et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Financial Development, Renewable Energy Consumption and Industrial Output Relation: Testing Fourier ARDL for Turkey

Published Online: May 21, 2024

Page range: 97 - 117

DOI: https://doi.org/10.2478/sbe-2024-0006

KeywordsFourier ARDL, Financial Development, Renewable Energy Consumption, Industrial Output

© 2024 Cüneyt Kiliç et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Fourier ARDL, Financial Development, Renewable Energy Consumption, Industrial Output