The impacts of non-renewable and renewable energy on CO2 emissions in Turkey

Abstract

As a result of great increases in CO₂ emissions in the last few decades, many papers have examined the relationship between renewable energy and CO₂ emissions in the energy economics literature, because as a clean energy source, renewable energy can reduce CO₂ emissions and solve environmental problems stemming from increases in CO₂ emissions. When one analyses these papers, he/she will observe that they employ fixed parameter estimation methods, and time-varying effects of non-renewable and renewable energy consumption/production on greenhouse gas emissions are ignored. In order to fulfil this gap in the literature, this paper examines the effects of non-renewable and renewable energy on CO₂ emissions in Turkey over the period 1970-2013 by employing fixed parameter and time-varying parameter estimation methods. Estimation methods reveal that CO₂ emissions are positively related to non-renewable energy and renewable energy in Turkey. Since policy makers expect renewable energy to decrease CO₂ emissions, this paper argues that renewable energy is not able to satisfy the expectations of policy makers though fewer CO₂ emissions arise through production of electricity using renewable sources. In conclusion, the paper argues that policy makers should implement long-term energy policies in Turkey.

Keywords: Carbon dioxide emissions; Fixed parameter and time-varying parameter estimation methods; Greenhouse gas emissions; Non-renewable energy; Renewable energy; Turkey.