Çetin, MuratEcevit, EyyupSeker, F.Günaydın, Davuthan2022-05-112022-05-112015978146667485114666748499781466674844https://doi.org/10.4018/978-1-4666-7484-4.ch018https://hdl.handle.net/20.500.11776/5517This chapter investigates the cointegration and causal relationship between financial development and energy consumption in the case of Turkey over the period 1960-2011. In doing so, the ARDL bounds testing and Johansen-Juselius approaches to cointegration and Granger causality test based on vectorerror correction model are employed. The empirical results show that the series are cointegrated. The empirical results also show a positive and statistically significant relationship between financial development and energy consumption in the long run. In addition, a unidirectional causality running from financial development to energy consumption is found in the short and long run. Thus, this chapter provides an empirical evidence that financial development is a determinant of energy consumption in Turkey. This chapter also presents some implications for Turkey's energy policy. © 2015, IGI Global. All rights reserved.en10.4018/978-1-4666-7484-4.ch018info:eu-repo/semantics/closedAccessBook Chapter2973142-s2.0-84957652425