Yenilenebilir Enerji Tüketimi, Teknolojik İnovasyon ve Sanayi Katma Değeri AB Ülkelerinde Ekonomik Büyüme Üzerindeki Dinamik Etkileşimler (1995-2021)
Renewable energy consumption, technological innovation and industrial value added: dynamic interactions on economic growth in EU countries (1995-2021)

Summary/Abstract: The target of sustainable economic growth is gaining more and more importance in today's global economicpolitical agenda; energy supply security, environmental sustainability and productivity-based growth strategies have become priority policy areas within this framework. In this context, it has become necessary to analyze the dynamic relationships between renewable energy consumption, technological innovation and industrial value added which are considered among the main determinants of economic growth, with a holistic approach. Although the effects of each of these variables on economic growth have been addressed separately in different studies in the literature, the number of studies examining these three variables together within the same model framework is quite limited. The main objective of the study is to empirically analyze the effects of renewable energy consumption, technological innovation and industrial value added on economic growth using annual data for the period 1995–2021 in 22 European Union (EU) countries. In this respect, the study aims to contribute to filling the gap in the literature and to offer holistic suggestions for policy makers. In the study, firstly, descriptive analyses suitable for panel data structure were conducted, since cross-sectional dependency, autocorrelation and heteroscedasticity problems were detected in the model, Driscoll-Kraay method, which is an effective estimation tool against such structural problems, was used. Thanks to this method, which provides long-term and comparative analysis, solid econometric results were obtained in which structural changes and policy effects depending on time were considered. The empirical findings obtained reveal that the effects of the three basic variables considered in the study on economic growth proceed in different directions. Accordingly, it was observed that a 1% increase in technological innovation reduced economic growth by approximately 0.173%. This situation suggests that innovation may have a restrictive effect due to transformation processes and restructuring costs instead of supporting economic growth in the short term. On the other hand, it was concluded that a 1% increase in renewable energy consumption increased economic growth by 0.176%. This finding shows that the use of environmentally friendly energy sources contributes positively not only to environmental sustainability but also to economic performance. It has been determined that a 1% increase in industrial value added reduces economic growth by 0.392%. Therefore, it indicates that the increase in industrial activities may negatively affect growth by creating environmental and structural costs under certain conditions. While these results indicate that the use of renewable energy should be encouraged in terms of economic growth, they also indicate that the effects of technological innovation and industrial production on growth should be evaluated more carefully in a contextual manner. Thus, the study provides original and empirically based contributions that guide policy makers in achieving sustainable development goals.

• Details
• Contents