AN EMPIRICAL ANALYSIS OF THE ENVIRONMENTAL KUZNETS CURVE UNDER STRUCTURAL BREAKS: THE EXAMPLE OF TURKEY


This paper investigates the presence of the Environmental Kuznets Curve (EKC) in Turkey for the period between 1960 and 2014. For this purpose, the Maki (2012) cointegration test that allows structural breaks was used. The EKC hypothesis suggests that there is an inverted U-shaped relationship between emissions and economic growth. The EKC hypothesis is based on the cointegration relationship between the CO2 emissions per capita, GDP per capita and the square of GDP per capita. According to the cointegration analysis, there is a long-term relationship between the variables. FMOLS results confirmed the reliability of long-term results. The empirical results indicate an inverted U-shaped relationship between CO2 emissions and economic growth in Turkey, thus confirming the validity of the EKC hypothesis. The turnaround point was found to be $3640.95. Energy obtained from fossil fuels is an important factor in environmental pollution. Policy makers need to be more interested in renewable and clean energy sources rather than fossil fuels to be able to meet the energy requirements. The interest of local and foreign investors in this area should be increased. The investments should increase, particularly through the help of incentives to be provided by the government. These incentives include the guarantee for the purchase of energy at a certain value, assignment of space for investors, the creation of technological infrastructures, and so on. Other policy recommendations based on the theoretical and empirical results are provided in the final section of the study.


Keywords


Environmental Kuznets curve, CO2 emissions, Economic Growth, Turkey

Author : Tuncer GÖVDELİ
Number of pages: 307-318
DOI: http://dx.doi.org/10.29228/TurkishStudies.22904
Full text:
Share:
Alıntı Yap:
Turkish Studies-Economics,Finance,Politics
E-Mail Subscription

By subscribing to E-Newsletter, you can get the latest news to your e-mail.