Sectoral energy consumption and economic growth nexus in Turkey

The paper examines the nexus between sectoral energy consumption and economic growth for Turkey with annual data over the period 1970-2007. In order to analyze the relationship between sectoral energy consumption and economic growth econometrically, the stationarity test, VAR model, co-integration test, Granger causality test, impulse-response functions and variance decompositions are used. Findings showed that energy consumption by sector and economic growth are cointegrated they have a long-term relationship. Moreover it was seen that energy consumption in agriculture and industry have a positive impact on economic growth but energy consumption in household:; and transportation have a negative impact on economic growth.