SUSTAINABLE GROWTH THROUGH GREEN ECONOMY: AN ECONOMETRIC ANALYSIS

Objective: In recent years, the growing interest and awareness of environmental issues have once again brought the issue of population growth to the forefront, exerting significant pressure on production. The increased pressure on production and the resultant rise in production have led to a faster trend in consumption. As a natural consequence of both trends, detrimental effects on ecological balance and the environment have begun to emerge. The concept of "green economy" has emerged as an approach to restore the disrupted ecological balance and operationalize this order. This widely spreading concept has begun to generate significant policies at both national and international levels. Method: This study aims to examine the relationship between renewable energy production, consumption, wastewater, and solid waste data, covering the years 1980-2022, using econometric methods to explore the relationship between green economy and economic growth in the context of Turkey. The objective is to analyze the impact of the recent and rapidly increasing transformation towards "green economy" on the long-term trajectory of economic growth in Turkey. Result and Discussion: Based on the findings of the study, it has been determined that, at the 0.05 level of statistical significance, there is no long-term relationship between the variables and economic growth, as well as no long-term significant relationship between any of the variables. When the statistical significance is accepted at the 0.10 level, a significant long-term relationship is identified between the amount of wastewater and renewable energy, with a 1% increase in wastewater leading to a 0.82% increase in renewable energy. Implications: The findings of this study and the transformation towards a green economy, widely covered in the literature, have been recognized in Turkey and an unnamed green transformation movement has begun. As the results of the analysis of the study indicate, the policies introduced for the transition to a green economy and transformation efforts have a positive and significant impact on economic growth in the long term, but the same cannot be claimed for the short term, but in the future, advances in scientific and technological progress and over-specialization will inevitably have positive consequences on global and domestic sustainable development in the short term. Originality/Value: The distinctive feature of this study from similar studies in the literature is that the relationship between the green economy and sustainable growth was analyzed empirically and with five separate econometric models. Recommendations: Turkey needs serious reforms in education in its transition to a green economy. In addition, there is a need for political determination to use environmentally friendly sectors that are more open to innovation and competition, such as renewable energy and green building sectors.