The relationship between energy technology, energy efficiency, renewable energy, and the environment in Türkiye

Abstract

This study aims to investigate the effects of technological advancements, energy efficiency, and renewable energy utilization in Türkiye's fossil fuel sector on CO2 emissions and to test the applicability of the Environmental Kuznets Curve (EKC) hypothesis. The EKC hypothesis has been confirmed for Türkiye, revealing an inverse U-shaped relationship between CO2 absorption and per capita income. Furthermore, all variables display negative coefficients and show statistical significance in the long term. Thus, it has been established that technological progress, energy efficiency, and the adoption of renewable energy have a positive impact on reducing CO2 emissions. Given Türkiye's status as an energy importer heavily dependent on fossil fuels, prioritizing technological advancements in the energy sector is crucial since complete abandonment of fossil fuels in the near future is unlikely. Moreover, efficient energy utilization plays a vital role in reducing energy imports, a substantial contributor to Türkiye's current account deficit. Furthermore, an increase in renewable energy will have a positive effect on Türkiye's economic and energy outlook. The uniqueness of these findings lies in the utilization of these significant variables, which have not been previously employed in the context of the Türkiye economy.