The Impact of Renewable and Non-Renewable Energy Consumption on CO2 Emissions in Türkiye: Evidence from Augmented ARDL Approach

Abstract

The increase in CO2 emissions, recognized as a global problem, is significantly influenced by energy consumption. Türkiye, which is among the developing countries, is a country dependent on foreign sources to meet its energy needs. Nevertheless, it satisfies its energy requirements through both renewable and non-renewable sources. The primary objective of this study is to elucidate the impact of consumption from renewable and non-renewable energy sources in Türkiye between 1990 and 2020 on CO2 emissions and investigate the validity of the Environmental Kuznets Curve hypothesis. We apply the traditional and structural break unit root tests to check whether the variables are stationary. We employed the newly accepted Augmented Autoregressive Distributed Lag (ARDL) method to estimate the long-run relationship between variables. According to the findings, there is a U-shaped relationship between economic growth and CO2 emissions. It means that the Environmental Kuznets Curve hypothesis is not applicable in Türkiye. Moreover, it concluded that non-renewable energy consumption plays a role in emission increase, while renewable energy consumption is effective in emission reduction.