The Relationship Between Index of Sustainable Economic Welfare and Renewable Energy Production in Turkey

Abstract

ISEW (Index of Sustainable Economic Welfare), one of the important indicators of sustainable development, is an important tool that should be measured regularly and its relationship with other macroeconomic indicators should be closely monitored. In this context, the current calculation of ISEW in the Turkish economy and the analysis of its relations with renewable energy generation constitutes the purpose of this study. As a result of the econometric tests, it is found that there is a long-term relationship between the two variables considered according to the RALS-EG cointegration test. The long-term coefficient estimation of the co-integrated variables has been estimated by the dynamic OLS (DOLS) method, and it is seen that renewable energy production has a negative effect on sustainable development. This result differs from the majority of studies on developed countries. Theory and literature say that renewable energy will support sustainable development.