Energy Consumption and Human Development: Evidence from the Fourier Augmented ARDL Approach
Chapter from the book: Durgun, B. & Durgun, F. (eds.) 2023. Macro Aspects of Energy Economics.

Burhan Durgun
Dicle University

Synopsis

There is a large literature analyzing the relationship between the level of energy consumption, which is the main input in the production process, and economic growth. These studies focus on the material part of welfare and ignore the development dimensions such as health and education. The effect of energy consumption on development has been the subject of recent research, yet there remains no consensus on the issue. Analyzing the relationship between energy and development can provide an opportunity to use energy as a policy tool in the development process. In this study, the impact of primary energy consumption on development (planetary pressures-adjusted human development index) in Türkiye for the period 1990-2021 is analyzed by Fourier augmented ARDL method. According to the bounds test results, there is a cointegration relationship between the variables. In the long run, the effect of energy consumption on the human development index is positive and significant. The causality test results show that there is a unidirectional causality from energy consumption to human development in the long run. According to these results, energy consumption can be used as a tool to enhance the level of human development. Increasing the level of energy consumption with a greater focus on renewable energies could reduce the loss of human development from planetary pressure. The deployment of both nuclear energy and renewable energies will aid in decreasing carbon emissions while simultaneously enhancing the level of human development. There is also a need for more comprehensive and uninterrupted access to energy.

How to cite this book

Durgun, B. (2023). Energy Consumption and Human Development: Evidence from the Fourier Augmented ARDL Approach. In: Durgun, B. & Durgun, F. (eds.), Macro Aspects of Energy Economics. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub299.c1440

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Published

October 27, 2023

DOI