Abstract

Alternative solutions such as green growth, sustainable growth and increasing the share of renewable resources in energy use are proposed to eliminate the environmental pressure caused by fossil fuels. Based on this, in this study, a possible convergence relationship among the energy sources on a sectoral basis, and if so, whether this relationship is realized through fossil or renewable resources are empirically tested in the period of 1970-2017 for Turkey where sectoral transformations have taken place. Panel TAR (Threshold Autoregressive Models) data analysis findings show that there is no convergence relationship between the relevant sectors under the linear model, but there is a partial convergence under two regimes with different forms. In addition, the findings of Lumsdaine-Papell multiple structural breaks unit root analysis provide evidence that this partial convergence is realized through fossil fuels used in the relevant sectors. Renewable resources do not show convergence in any sector due to the presence of limited use areas within the sectors. This finding is considered as an indicator that the renewable energy policies and incentives in Turkey are insufficient in practice.

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