GREEN ECONOMICS Vol.1, No.2, 2023, pp.111-125 111 IMPACT OF RENEWABLE ENERGY CONSUMPTION ON CO2 EMISSIONS IN TÜRKIYE: EVIDENCE FROM ARDL AND BAYER-HANCK COINTEGRATION TECHNIQUES Neman Eylasov 1* , Nijat Gasim 2 , Fuzuli Aliyev 3 , Ayşe Nur Şahinler 4 1 Istanbul University, Department of Economics, Istanbul, Türkiye 2 Dokuz Eylul University, Department of Econometrics, Izmir, Türkiye 3 ADA University, School of Business, Baku, Azerbaijan 4 Ankara Yildirim Beyazit University, Department of Economics, Ankara, Türkiye Abstract. The present study aims to investigate the effects of economic growth, imports, exports, and renewable energy consumption on CO2 emissions in Türkiye using time series data ranging from 1990 to 2020. Stationarity of series was verified by using unit root tests including ADF and PP, while an autoregressive distributed lag (ARDL) model was used to check the dynamic association amid prescribed variables with long-run analysis. Additionally, the Bayer-Hanck (2013) method was used for the cointegration relationship between variables. The estimation results present that (i) economic growth and imports increase carbon emissions; (ii) renewable energy consumption reduces carbon emissions; (iii) export reduces carbon emissions. Based on the findings of this study, relevant policy recommendations are also presented at the end of the study. Keywords: Renewable energy consumption, ARDL Bound test, CO2, Bayer-Hanck cointegration. Corresponding Author: Neman, Eylasov, Istanbul University, Department of Economics, Istanbul, Turkiye, e-mail: nemaneylasov@ogr.iu.edu.tr Received: 12 July 2023; Accepted: 22 September 2023; Published: 30 September 2023. 1. Introduction Fossil fuels were used intensively for 200 years until the 1973 oil crisis. The post- oil crisis period has been characterized by an environment of uncertainty regarding energy resources. This uncertainty regarding the use of fossil fuels led to insecurity. Thus, this insecurity stemming from fossil fuels has led to a global shift towards renewable energy sources. The widespread use of energy resources has revealed the need to ensure energy security. Due to the necessity of ensuring energy security, energy diversification has become one of the most important elements of energy policies. In addition, the rise in natural gas and oil prices in today's world has also brought the issue of energy diversification to the forefront. For these reasons, there is a rapid increase in the focus on renewable energy sources, which are essential for enhancing energy diversity. The inclination towards renewable energy sources gained momentum in the 1990s with the emergence of environmental awareness. Traditional energy production and consumption from fossil fuel sources contribute to regional and global greenhouse gas emissions, leading to global warming and ultimately climate change. Therefore, energy derived from renewable sources, which does not emit greenhouse gases into the atmosphere at least during the production phase, is referred to as 'clean energy.' (Çağlar, 2006; Çağlar & Mehmet, 2017).