RENEWABLE ENERGY LABOR ECONOMIC GROWTH RELATIONSHIP PANEL CAUSALİTY ANALYSIS

Abstract

In the twenty- first century, eighty percent of energy used by world economies is obtained from the fossil fuels. However in researches it is claimed that Fossil fuels like petrol,natural gas and cool reserves have been decreasing day and it won’t meet the contantly increasing demand for along time .Today the most important factor of growth and sustainable development for economies is energy. Because of this reason, there is a comptetion among the countries for energy. Increases in the petrol prices, researching of new alternatives in energy demand in order to present the negative effects like balance of payments and harms for environment and technological developments have enabled the usage of renawable energy sources. Preventing the dependence on outsource, taking measures against the hitches due to fossil sources will be possible by increasing the energy diversity. Thus the relationship among the renawable energy, nuclear energy and other energy sources with macroeconomics variance has being searched. In this study, the relation among the energy consuption, economic development ,and joining the workforce and the direction of relation has been searched in 12 European Union countries which are the first ones in the usage of renawable energy and other 13 countries consisting of Germany, Australia, USA, Sweden, Spain, Italy, Brazil, Japan, United Kingdom, India, France ,Canada and Turkey via causality test, there is one way causality relationship from the usage of renewable energy towards the rate of joining the work force , and there is a double-sided causality relationship from the economic development towards the renewable energy usage towards economic development, it has been found that Feedback Hypothesis is valid.