The Role of Financial Development, Globalization, Urbanization and Green Technological Innovation in Renewable Energy Consumption: Empirical Evidence in the Case of Turkey

Abstract

The most important way to reduce carbon emissions (CE) is to invest in renewable energy (RE) technologies. Green technologies are one of the key tools of environmentally friendly innovation. Energy sources such as solar energy, wind energy, hydropower, geothermal energy, and bioenergy are the most important resources in ensuring environmental sustainability, unlike fossil-based energy sources. For example, renewable energy technologies such as solar panels and wind turbines provide the energy input required for production, offering environmentally friendly and sustainable options. In this study, aims to determine the role of green technological innovation (GTI) in renewable energy consumption (REC) in Turkey in the period of 2000-2019. For this purpose, globalization (GLO), financial development (FD), and urbanization (UP) variables are included as control variables in the REC model. According to the ARDL long-term forecast results, it was found that GTI increased the REC. It has been determined that GLO and UP variables have a reducing effect on REC. The effect of the FD variable on REC is positive but statistically insignificant. The results of the analysis reveal that policy implementations for environmental technologies in the Turkish economy are an important factor in increasing REC and achieving sustainable development goals.