SavedAdd your journal

Journals / Ekonomi Politika ve Finans Araştırmaları Dergisi / 2026 / Cilt: 6 Sayı: 1

The Impact of Renewable and Non-Renewable Energy Consumption on Financial Development: Evidence from Emerging Countries

Yenilenebilir ve Yenilenemez Enerjinin Finansal Gelişim Üzerindeki Etkisi: Gelişmekte Olan Ülkelerden Kanıtlar

Feyyaz Zeren(YALOVA ÜNİVERSİTESİ)0000-0003-0163-5916
Süleyman Serdar Karaca(GAZİOSMANPAŞA ÜNİVERSİTESİ)0000-0002-5424-5359
Pages
1–15
Publication Date
2021-04-30
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Also, there is a bidirectional causality finding between RNW and FD, and there is a one-way causality finding from FD to non-RNW.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Energy is an essential factor for countries to accomplish sustainable development and the importance of renewable energy has enhancing day by day.
📊
Key Findings & Data:The financial system deposits to GDP, deposit money bank assets to GDP and private credit to GDP have considered as FD indicators in the paper that investigates the period of 1980-2018.
💡
Conclusion & Impact:Also, there is a bidirectional causality finding between RNW and FD, and there is a one-way causality finding from FD to non-RNW.
🔬Design:Araştırma Makalesi
📍Scope:2018 Verileri
⚙️Variables:Yenilenebilir Enerji Tüketimi · Yenilenemeyen Enerji Tüketimi · Finansal Gelişim

Abstract

Energy is an essential factor for countries to accomplish sustainable development and the importance of renewable energy has enhancing day by day. Over the last three decades the relationship between renewable energy consumption (RNW) and economic growth as well as energy consumption (EC) and financial development (FD) has intensely studied. In this paper the relationship between RNW, non-renewable energy consumption (non-RNW) and FD is investigated for top emerging countries of Bloomberg. The financial system deposits to GDP, deposit money bank assets to GDP and private credit to GDP have considered as FD indicators in the paper that investigates the period of 1980-2018. The long-term relationship between the variables was studied with Westerlund (2007) panel cointegration test and the direction of this relationship was examined with Pesaran (2006) CCE-MG panel cointegration estimator. The existence of causality among the variables was analyzed with Dumitrescu and Hurlin (2012) panel causality test. According to the cointegration test results, a positive long-run relationship was found between RNW and FD. Also, there is a bidirectional causality finding between RNW and FD, and there is a one-way causality finding from FD to non-RNW.

Özet

Enerji, ülkelerin sürdürülebilir kalkınmayı başarması için önemli bir faktördür ve yenilenebilir enerjinin önemi her geçe gün artmaktadır. Son otuz yılda yenilenebilir enerji tüketimi - ekonomik büyüme ve enerji tüketimi - finansal gelişim ilişkileri yoğun bir şekilde araştırılmıştır. Bu çalışmada Bloomberg'in en çok gelişmekte olan ülkeleri için yenilenebilir enerji tüketimi, yenilenemeyen enerji tüketimi ve finansal gelişim arasındaki ilişkiler araştırılmıştır. 1980-2018 dönemini ele alan çalışmada bankalardaki mevduatların GSYİH'ye oranı, finansal sistem mevduatının GSYİH'ye ve özel kredilerin GSYİH'ye oranı finansal gelişim göstergeleri olarak kullanılmıştır. Değişkenler arasındaki uzun vadeli ilişki Westerlund (2007) panel eşbütünleşme testi ile incelenmiş ve bu ilişkinin yönü Pesaran’ın (2006) CCE-MG panel eşbütünleşme tahmincisi ile belirlenmiştir. Dumitrescu ve Hurlin (2012) tarafından geliştirilen panel nedensellik testi vasıtasıyla ile değişkenler arasında nedenselliğin yönü araştırılmıştır. Elde edilen panel eşbütünleşme testi sonuçlarına göre, yenilenebilir enerji tüketimi ve finansal gelişim arasında uzun dönemli pozitif yönlü bir ilişki bulunmuştur. Öte yandan, yenilenebilir enerji tüketimi ile finansal gelişim arasında çift yönlü nedensellik bulgusuna rastlanmış olup, finansal gelişimden yenilenemez enerji tüketimine doğru ise tek yönlü nedensellik bulgusu söz konusudur.

🔖

Cite This Article

Zeren, F., Karaca, S. S. (2021). The Impact of Renewable and Non-Renewable Energy Consumption on Financial Development: Evidence from Emerging Countries. Ekonomi Politika ve Finans Araştırmaları Dergisi, Cilt: 6 Sayı: 1, 1–15. https://doi.org/10.30784/epfad.727864

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (39)

  1. Akhtar, M. H., Sheikh, M., R. and Altaf, A. (2016). Financial development, energy consumption and trade openness nexus: Empirical evidence from selected South Asian Countries. Pakistan Journal of Social Sciences, 36(1), 505-518. Retrieved from https://www.prdb.pk/
  2. Ali, H. S., Yusop, Z. B. and Hook, L. S. (2015). Financial development and energy consumption nexus in Nigeria: An application of autoregressive distributed lag bound testing approach. International Journal of Energy Economics and Policy, 5(3), 816-821. Retrieved from https://www.econjournals.com/index.php/ijeep
  3. Al-Mulali, U. and Lee, J. Y. M. (2013). Estimating the impact of the financial development on energy consumption: Evidence from the GCC (gulf cooperation council) countries. Energy, 60, 215-221. https://doi.org/10.1016/j.energy.2013.07.067
  4. Al-Mulali, U. and Sab, C. N. B. C. (2012a). The impact of energy consumption and CO2 emission on the economic growth and financial development in the SubSaharan African Countries. Energy, 39, 180-186. https://doi.org/10.1016/j.energy.2012.01.032
  5. Al-Mulali, U. and Sab, C. N. B. C. (2012b). The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries, Renewable and Sustainable Energy Reviews, 16, 4365-4369. https://doi.org/10.1016/j.rser.2012.05.017
  6. Bayer, C. and Hanck, C. (2013). Combining non‐cointegration tests. Journal of Time series analysis, 34(1), 83-95. https://doi.org/10.1111/j.1467-9892.2012.00814.x Bloomberg Official Websites. (2020). Top emerging countries [Dataset]. Retrieved from https://www.bloomberg.com
  7. Bozoklu, Ş. ve Yılancı, V. (2013). Finansal gelişme ve iktisadi büyüme arasındaki nedensellik ilişkisi: gelişmekte olan ekonomiler için analiz. [The causality relation between financial development and economic growth: An analysis for emerging economies]. Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 28(2), 161-187. Breusch, T. S. and Pagan A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. Review of Economic Studies, 47(1), 239-253. Retrieved from https://www.restud.com/
  8. Brunnschweiler, C. N. (2009). Oil and growth in transition countries. (CER-ETH-Center of Economic Research at ETH Zurich, Working Paper, 09/108). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1403313
  9. Çağlar, A. E. ve Kubar, Y. (2017). Finansal gelişme enerji tüketimini destekler mi?. Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 27, 96-121. Çetin, M. A. ve Bakırtaş, İ. (2018). Finansal gelişmişliğin yenilenebilir enerji tüketimi üzerindeki uzun dönemli etkileri: G-7 ülkeleri örneği. [The long run impacts of financial development on renewable energy consumption: A case of G-7 countries]. Trakya Üniversitesi Sosyal Bilimler Dergisi, 20(2), 37-54. https://doi.org/10.26468/trakyasobed.421105
  10. Chang, S. C. (2015). Effects of financial developments and income on energy consumption. International Review of Economics and Finance, 35, 28-44. https://doi.org/10.1016/j.iref.2014.08.011
  11. Chtioui, S. (2012). Does economic growth and financial development spur energy consumption in Tunisia?. Journal of Economics and International Finance, 4(7), 150–158. https://doi.org/10.5897/IJPS12.014
  12. Çoban, S. and Topcu, M. (2013). The nexus between financial development and energy consumption in the EU: A dynamic panel data analysis. Energy Economics, 39, 81-88. https://doi.org/10.1016/j.eneco.2013.04.001.
  13. Dan, Y. and Lijun, Z. (2009). Financial development and energy consumption: An empirical research based on Guangdong province. Papers presented at 2009 International Conference on Information Management, Innovation Management and Industrial Engineering, Xi’an, China. doi:10.1109/ICIII.2009.334
  14. Destek, M. A. (2017). Financial development and energy consumption nexus in emerging economies. Energy Sources, Part B: Economics, Planning, and Policy, 13(1), 76-81. https://doi.org/10.1080/15567249.2017.1405106
  15. Dumitrescu, E. and Hurlin, C. (2012). Testing for granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450-1460. https://doi.org/10.1016/j.econmod.2012.02.014
  16. Emirmahmutoglu, F. and Kose, N. (2011). Testing for Granger causality in heterogeneous mixed panels. Economic Modelling, 28, 870–876. https://doi.org/10.1016/j.econmod.2010.10.018
  17. Energy Information Administration of United Stated (2019). Energy [Dataset]. Retrieved from https://www.eia.gov/
  18. Eren. B.M., Taspinar, N. and Gokmenoglu, K.K. (2019). The impact of financial development and economic growth on renewable energy consumption: Empirical analysis of India. Science of the Total Environment, 663, 189-197. https://doi.org/10.1016/j.scitotenv.2019.01.323
  19. Fisher, A. (2011). Critical thinking: An introduction. Cambridge: Cambridge university press.
  20. Güngör, S., Korkmaz, Ö., Karaca, S. S. ve Keskin Benli, Y. (2017). Küresel gelişmeler bağlamında enerjide dışa bağımlı gelişmekte olan ülkelerde birincil enerji tüketimiyle finansal gelişme arasındaki ilişki. [The relationship between primary energy consumption and financial development in developing countries that were dependent on energy in context of global development]. Maliye Finans Yazıları, (108), 123-142. https://doi.org/10.33203/mfy.311742
  21. Islam, F., Shahbaz, M., Ahmed, A. U. and Alam, M. (2013). Financial development and energy consumption nexus in Malaysia: A multivariate time series analysis. Economic Modelling, 30, 435–441. https://doi.org/10.1016/j.econmod.2012.09.033
  22. Kakar, Z.H., Khilji, B.A. and Khan, M. J. (2011). Financial development and energy consumption: Empirical evidence from Pakistan. International Journal of Trade, Economics and Finance, 2(6), 469-471. http://dx.doi.org/10.7763/IJTEF.2011.V2.150
  23. Mahalik, M. K., Babu, M. S., Loganathan, N. and Shahbaz, M. (2017). Does financial development intensify energy consumption in Saudi Arabia?. Renewable and Sustainable Energy Reviews, 75, 1022–1034. http://dx.doi.org/10.1016/j.rser.2016.11.081
  24. Mehrara, M. and Musai, M. (2012). Energy consumption, financial development and economic growth: An ARDL approach for the case of Iran. International Journal of Business and Behavioral Sciences, 2(6), 92-99.
  25. Paramati, S. R., Ummalla, M. and Apergis, N. (2016). The effect of foreign direct investment and stock market growth on clean energy use across a panel of emerging markets economies. Energy Economics, 56, 29-41. https://doi.org/10.1016/j.eneco.2016.02.008
  26. Pesaran, M. H., Shin, Y. and Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationship. Journal of Applied Econometrics, 16, 289–326. https://doi.org/10.1002/jae.616
  27. Pesaran, M. H. (2006). Estimation and inference in large heterogeneous panels with a multifactor error structure. Econometrica, 74(4), 967–1012. https://doi.org/10.1111/j.1468-0262.2006.00692.x
  28. Pesaran, M. H. and Yamagata, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50–93. http://dx.doi.org10.1016/j.jeconom.2007.05.010
  29. Sadorsky, P. (2010). The impact of financial development on energy consumption in emerging economies. Energy Policy, 38, 2528–2535. https://doi.org/10.1016/j.enpol.2009.12.048
  30. Sadorsky, P. (2011). Financial development and energy consumption in central and eastern European frontier economies. Energy Policy, 39(2), 999-1006. https://doi.org/10.1016/j.enpol.2010.11.034
  31. Salman, D. M. and Atya, E.M. (2014). What is the role of financial development and energy consumption on economic growth? New evidence from North African countries. International Journal of Finance & Banking Studies, 3(1), 137-149. Retrieved from https://www.ssbfnet.com/ojs/index.php/ijfbs
  32. Shahbaz, M. and Lean, H. H. (2012). Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia. Energy Policy, 40, 473-479. https://doi.org/10.1016/j.enpol.2011.10.050
  33. Topcu, M. and Altay, B. (2017). New insight into the finance-energy nexus: disaggregated evidence from Turkish sectors. International Journal of Financial Studies, 5(1), 1-16. https://doi.org/10.3390/ijfs5010001
  34. Topcu, M. and Payne, J. E. (2017). The financial development–energy consumption nexus revisited. Energy Sources, Part B: Economics, Planning, and Policy, 12(9), 822-830. https://doi.org/10.1080/15567249.2017.1300959
  35. Westerlund, J. (2007). Testing for error correction in panel data. Oxford Bulletin of Economics and Statistics, 69(6), 709-747. https://doi.org/10.1111/j.1468-0084.2007.00477.x
  36. Xu, S. J. (2012). The impact of financial development on energy consumption in China: based on SYS-GMM estimation. Advanced Materials Research, 524-527, 2977–2981. https://doi.org/10.4028/www.scientific.net/AMR.524-527.2977
  37. Zeren, F. and Koç, M. (2014). The nexus between energy consumption and financial development with asymmetric causality test: new evidence from newly industrialized countries. International Journal of Energy Economics and Policy, 4(1), 83-91. Retrieved from https://www.econjournals.com/index.php/ijeep
  38. Bozoklu, Ş. ve Yılancı, V. (2013). Finansal gelişme ve iktisadi büyüme arasındaki nedensellik ilişkisi: gelişmekte olan ekonomiler için analiz. [The causality relation between financial development and economic growth: An analysis for emerging economies]. Dokuz Eylül Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 28(2), 161-187.
  39. Çağlar, A. E. ve Kubar, Y. (2017). Finansal gelişme enerji tüketimini destekler mi?. Süleyman Demirel Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 27, 96-121.