Author(s): Hacı Ahmet KARADAŞ, acı Bayram IŞIK

Turkey, which is shown as one of the Developing countries, has been faced with current account deficits problem due to meet the growing energy needs with fossil fuels after 1980. One of the most important reasons of the current account deficit problem is to meet the increasing energy needs of the country with fossil fuels and to obtain fossil fuels by means of imports. In this study, the current account balance deficits and the negative impact of fossil fuel usage on these deficits are mentioned. Pedroni, Kao and Fisher cointegration tests were conducted using the annual panel data of 31 countries including selected OECD countries and China in the period of 1995- 2015 in order to examine the impact of renewable energy use on CAB deficits. As a result of the analysis, the existence of cointegration between the series was determined. While the use of fossil fuel led to an increase in the CAB deficits, the use of renewable energy will help to reduce this problem.


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