THE EFFECT OF FOSSIL FUEL AND RENEWABLE ENERGY ON LOAD CAPACITY FACTOR IN TURKIYE: BOOSTRAP FARDL APPROACH FOR SUSTAINABLE ENVIRONMENT

Abstract

This study aims to econometrically examine the interactions of fossil fuel use, renewable energy use, economic growth and urbanization with the load capacity factor in Turkiye. The load capacity factor is a very comprehensive environmental indicator that can read environmental demand as well as environmental supply. In the study where annual data for the periods 1961-2022 and 1990-2022 were used, long-term interactions were tested with the Bootstrap FARDL cointegration test and the coefficients of these interactions were obtained with FMOLS (Fully Modified Least Squares) and DOLS (Dynamic Ordinary Least Squares) estimators. According to the results obtained, it is confirmed that fossil fuel use, renewable energy use, economic growth and urbanization have long-term interactions with the load capacity factor in Turkiye. Fossil fuel use, economic growth and urbanization harm environmental sustainability by reducing the load capacity factor, while renewable energy use increases the load capacity factor. This situation shows us the necessity of increasing renewable energy resources and making their use widespread in Turkiye. Considering that urbanization and economic growth cause environmental destruction, the integration of environmentally friendly green technologies and green finance into urban development and economic growth can support a sustainable environment by increasing the load capacity factor.