Assessing the impacts of industrialization, deindustrialization and financialization on Turkey’s energy security: evidence from the augmented NARDL method
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 27 February 2023
Issue publication date: 16 November 2023
Abstract
Purpose
This study aims to examine the effects of industrialization, deindustrialization and financialization on Turkey’s energy insecurity by controlling the impacts of urbanization and alternative energy generation for the 1980–2018 period.
Design/methodology/approach
This study proposed an econometric model relying on the literature. Moreover, based on different financialization variables, this study estimated two specifications of this model using the augmented nonlinear autoregressive distributed lag approach.
Findings
The results are as follows: first, industrialization increased Turkey’s long-run energy insecurity, whereas deindustrialization did not affect Turkey’s energy security. Second, urbanization worsened Turkey’s energy insecurity. Third, financialization aggravated Turkey’s energy insecurity. Last, alternative energy generation improved Turkey’s energy security.
Research limitations/implications
This study identifies the energy security’s drivers in Turkey with a focus on industrialization and financialization. Nonetheless, further research is needed on other emerging economies with high energy insecurity levels, and a disaggregated approach can be followed to examine how various industrial sectors impact energy security.
Practical implications
To combat energy insecurity, quantifiable, innovative and energy-efficient goals should be set for Turkey’s industry sector. Additionally, to achieve these goals, financial opportunities should be provided by reforming the financial sector. This reformative approach can also curb financialization’s negative effect on Turkey’s energy security.
Social implications
Deindustrialization is not a solution to Turkey’s energy insecurity. Also, unless necessary actions are taken, industrialization, financialization and uncontrolled urbanization may continue to threaten Turkey’s energy security. Finally, promoting alternative energy generation seems to be a viable long-run solution to energy insecurity.
Originality/value
Although a significant number of studies investigated industrialization’s and financialization’s impacts on energy demand or environmental damage, only a few studies examined their impacts on energy insecurity. Similar to other developing nations, as Turkey is facing chronic energy security problems, the author believes that the analysis provides important policy insights regarding energy (in)security’s drivers. By differentiating the impacts of industrialization and deindustrialization, this study also shows that deindustrialization may not be a proper solution to deal with energy insecurity.
Keywords
Acknowledgements
This manuscript has not been previously published in any language anywhere and that it is not under simultaneous consideration or in press by another journal. This research did not receive any specific grant from funding agencies in the public, commercial or not-for-profit sectors.
Citation
Karasoy, A. (2023), "Assessing the impacts of industrialization, deindustrialization and financialization on Turkey’s energy security: evidence from the augmented NARDL method", International Journal of Energy Sector Management, Vol. 17 No. 6, pp. 1053-1073. https://doi.org/10.1108/IJESM-07-2022-0014
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited