SECTORAL CONVERGENCE ANALYSIS OF PRIMARY ENERGY CONSUMPTION IN TURKEY

Abstract

This study analyzes the energy consumption of sectors using the Phillips-Sul Club Convergence model and examines the relationship between sector value added, energy consumption, and deviations in energy prices via Quantile Moments Regression. First, the consumption of natural gas and petroleum products in the main sectors and sub-sectors in Turkey for the period 1992-2021 is examined using the club convergence method. In the second stage of the study, the factor cost and value-added data of the sectors are considered, and the effect of energy consumption and deviations in energy prices on value added is analyzed. In the first stage of the analysis, one club was identified in natural gas consumption among the sectors, while three clubs were identified in petroleum consumption. In the second stage of the analysis, according to the regression results applied to the converging sectors, it was determined that petroleum consumption positively affects the value added of the sectors in all quantiles. A positive and significant relationship was observed between the value added and natural gas consumption of the sectors.