Dynamics of total and industrial energy use in Turkiye from 1991 to 2019: a case study

Energy use is an indicator of economic growth. However, high energy intensity has two main disadvantages. First, low energy efficiency increases a country's dependence on other countries, especially when the country lacks energy sources. Second, if the country's energy needs are met using traditional fossil fuels, this increases its CO2 emissions and reduces its air quality. Improving energy efficiency and reducing energy intensity are essential to reach the sustainability targets. This paper investigates the determinants of energy use in Turkiye for the period 1991-2019 by taking a dual approach. First, utilizing the Tapio decoupling factor, the decoupling factor analysis is not only being done for total energy use and real GDP, but also for industrial energy use and industrial income. Second, the factors determining the country's total energy use are also examined, followed by an investigation of the indicators of energy use in the industry sector, which is highly energy intensive. For the industrial sector, two different decomposition analyses are performed and results are compared. The refined Laspeyres index method is adopted, and for each analysis, three main factors are considered. The empirical findings demonstrate that the income effect and population effect increased Turkiye's total energy use, whereas the energy intensity effect decreased it. The first decomposition analysis for the industrial energy use reveals partly contrasting results with the previously published articles. For the industry sector, the second analysis show that productivity and employment increased Turkiye's sectoral energy use; however, the sector's energy intensity reduced it. Turkiye achieved some success in terms of reducing energy intensity at the sectoral and aggregate levels; however, as the findings of the present study demonstrate, further efforts are needed to lessen the country's energy dependence and also to achieve future environmental sustainability targets. Trends relating to the determining factors in total and sectoral energy use are also compared in this paper, and some policy implications are presented.