THE IMPACTS OF ENERGY ON ECONOMIC GROWTH IN TURKEY (1970-2020)

Abstract

Since economic growth is one of the main indicators of the rise in a country’s welfare level, it has been a phenomenon that maintained its prominence and popularity during each period. Once the production volume of a country increases, the per capita income level also increases and economic growth occurs. In the new world order, where production technologies are developing rapidly, it is not possible to encounter a production process that does not include energy. Therefore, the energy policies implemented within the country’s economy gain great importance, and it becomes mandatory to utilize energy policies that are compatible with economic growth.

Since energy plays a critical role in the social and economic development of a country and is the main input of the industrial sector, it is possible to measure the development level of the energy sector in that country upon determining the level of economic development of that country. Since Turkey is foreign-dependent in terms of energy production, its energy needs are fulfilled through imports. A high level of foreign dependence on energy leads to a tremendous problem for the country’s economy. This situation strengthens the relationship between energy consumption and economic growth even further.

The relationship between energy consumption and economic growth coincided with the petroleum crisis that emerged in the 1970s. The unexpected rise in petroleum prices and increasing prices negatively affected the economies of various countries, enhancing the importance and value of energy, and the relationship between energy and economic growth has been the subject of many research studies ever since.

As a concept that leads the world economy and politics and constitutes the basis of international relations, energy should be considered one of the most crucial determinants of the world’s economic, social and geographical order. The desire of countries to have energy resources, to control these resources, or to have a voice in the matters that involve these resources indicates that the energy phenomenon is a serious commodity in terms of politics, besides its economic aspect.

Turkey’s need for energy is of great importance in terms of sustainable growth. Sustainable growth aims to maintain the balance between economic, social, and environmental problems by taking them into account as a whole. The consumption rate of primary energy resources per capita serves as the main factor in determining the welfare level and sustainable growth of countries.

The aim of this study was to determine the extent to which changes in energy levels affected economic growth in Turkey over the period 1970-2020. To this end, in order to detect the importance of energy in terms of economic growth, the structure of the energy markets in Turkey, the development of energy and the applied energy policies were investigated and overall evaluations and recommendations were made.