Effect of energy consumption and greenhouse gas emissions on economic growth in Turkey: empirical evidence from the agricultural sector


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Sönmez H.

3rd International World Energy Congress, Kayseri, Turkey, 4 - 05 December 2023, pp.153-165

  • Publication Type: Conference Paper / Full Text
  • City: Kayseri
  • Country: Turkey
  • Page Numbers: pp.153-165
  • Dokuz Eylül University Affiliated: Yes

Abstract

The agricultural sector involves intensive energy usage in various stages, including soil cultivation, irrigation, harvesting, and product storage. Thus, planning the energy use in agriculture efficiently is crucial for reducing costs, minimizing environmental impacts, and ensuring the sustainability of agricultural productivity. The aim of this study is to determine the impact of energy consumption and greenhouse gas emissions on growth in Turkey within the agricultural sector between 1998 and 2020.  The agricultural gross domestic product data has been used to represent the variable of economic growth in the agricultural sector. Data that represent total energy consumption in the agricultural sector, measured in tera joules for energy consumption, and data indicating total greenhouse gas emissions in the agricultural sector, measured in million tons of CO2 equivalent for carbon emissions, have been utilized. The results of the unit root tests have indicated that the variables used in the model have been stationary at different levels which is I(0) and I(1). Thus, the Autoregressive Distributed Lag Bound Test approach, which has been employed and provides consistent and unbiased results in small samples for series with different levels of stationarity, has been used to examine short and long-term relationships between variables. Moreover, the long term coefficient results indicate that a 1% increase in energy consumption in the agricultural sector corresponds to a 0.24% increase in the agricultural gross domestic product value. Furthermore, the vector error correction model coefficient, which has been calculated as 0.62, indicates that short-term imbalances have been corrected within 1.67 periods. Also, greenhouse gas emissions from the agricultural sector have had a positive and significant impact on agricultural gross domestic product. It has been considered that to reduction of fossil fuel use and increase in renewable energy sources, increase in incentives for the use of high-energy efficiency smart agricultural technologies.