The Relationship Between Energy Consumption and Human De-velopment Index: The Role of Electricity, Natural Gas and Oil Consumption

Abstract

The objective of this study is to empirically analyze the effects of electricity, natural gas, and oil consumption on the Human Development Index (HDI) in Turkey and to offer policy recommendations within the scope of sustainable development. To this end, unit root tests were applied to the time series data for electricity, natural gas, oil consumption, and HDI covering the 1990–2022 period, followed by the ARDL cointegration test to reveal the model's long- and short-run effects. According to the cointegration test results, a statistically significant relationship was observed in the short run between the one-period lagged value of oil consumption and the current period value of electricity consumption. While the one-period lagged value of oil consumption negatively affected the HDI in the short run, the current period value of electricity consumption affected it positively. In the long run, a significant relationship was found only between HDI and electricity consumption, with electricity consumption having a positive effect on the HDI. Oil consumption leaves transient effects on the HDI, and these effects are observed with a one-period lag. Electricity consumption, on the other hand, creates a stronger positive effect on the HDI in the long run rather than the short run.