Is Renewable Energy a Substitute or Complement to Crude Oil?

Renewable energy is very important for sustainable development. The transition from traditional energy sources to renewable energy sources is a current research topic. Within this framework, the purpose of the study is to analyze the determinants of renewable energy production for the period 2001-2021, specific to OECD countries. Since OECD countries have different levels of development, the threshold regression model was preferred. In addition, it was supported by panel causality test for the purpose of determine the direction of the relationship between the variables. The findings of the study show that GDP is directed more towards clean energy at higher OIP and IVA levels. Countries with lower OIP and lower IVA are more growth-oriented and directed more towards RES. Therefore, it is understood that at higher OIP and IVA, growth will be directed less towards RE and will reduce RES to a less significant extent.