Assessing the Validity of the N-Shaped LCC Hypothesis in Türkiye: Exploring the Impact of Renewable Energy

An investigation of the intricate interplay between environmental factors and economic growth constitutes a crucial area of study. This study examines how renewable energy consumption affects environmental conditions while employing the framework of the Load Capacity Curve hypothesis. The analysis examines whether Türkiye demonstrates an N-shaped pattern, suggesting a complex relationship between economic growth and environmental degradation, from 1965 to 2022. The research findings are supported by econometric analyses, including the ARDL and bounds tests for cointegration. This indicates the presence of the N-shaped LCC hypothesis. Furthermore, this study identifies the short-term impact of renewable energy consumption on environmental degradation levels. This research contributes to our understanding of the complex interrelationships among economic growth, the utilisation of renewable energy, and environmental preservation. The insights gained are of value to countries engaged in efforts to promote balanced economic development in harmony with ecological sustainability.