THE EUROPEAN UNION AND TURKEY'S ENEGRY DEPENDENCE AND IT'S IMPACT ON ECONOMIC GROWTH OF ENERGY CONSUMPTION

The European Union (EU) and Turkey have comprehensively in energy to be a source of oil and gas, due to economic growth, urbanization, and their own models, target, increasing energy needs not being preferred locally. Resourceless fuels are used to meet the increasing energy demand. Ensuring growth is an issue that should be considered for the industry, considering the increasing need for energy due to the increasing need in economic use. In this study, the relationship between the annual series of energy dependency, energy consumption, economic growth, for EU countries and Turkey between the years 1990-2018 was investigated by panel data analysis. As a result of the analysis, 1 unit increase in energy dependence causes an increase of 5904.44 euros in GDP. Since there is a unidirectional causality running from energy dependence to economic growth, the economic growth hypothesis is valid. Accordingly, it has been concluded that the increase in energy dependence in the EU and Turkey has an increasing effect on growth. In order to reduce their energy dependence, they need to implement strategies to increase energy savings and efficiency, as well as increase their renewable energy investments. As technological developments are achieved in the energy sector, digitalization, energy automation programs and software will be developed and energy resources will be used more effectively.