Renewable energy consumption, urbanization, financial development, income and CO2 emissions in Turkey: Testing EKC hypothesis with structural breaks

By Ugur Korkut Pata. Journal of Cleaner Production, 2018

1,020 citations recorded by the source corpus.

Abstract In this study, the short- and long-run dynamic relationship between per capita GDP, per capita carbon dioxide (CO2) emissions, financial development, per capita total renewable energy consumption, hydropower consumption, alternative energy consumption and urbanization was investigated by using ARDL bounds testing approach, Gregory-Hansen and Hatemi-J cointegration tests for Turkey during 1974–2014. The results of three cointegration test indicated that there was a long-run relationship between these variables. The coefficients obtained from the ARDL, fully modified least squares (FMOLS) and canonical cointegrating regression (CCR) estimators showed that economic growth, financial development, and urbanization increase environmental degradation, while total renewable energy consumption, hydropower consumption, and alternative energy consumption had no effect on CO2 emissions. The findings showed that economic growth caused the greatest increases in CO2 emissions, followed by urbanization and financial development. However, renewable energy consumption was not at a desirable level to reduce CO2 emissions. The study also support environmental Kuznets curve (EKC) hypothesis, which establishes an inverted U-shaped relationship between economic growth and CO2 emissions. The turning points of per capita GDP obtained from long-run regressions were found to be around 13523–14077 US Dollars, outside the sample period. The overall results indicated that Turkey has not reached the level of per capita GDP that can reduce environmental pollution and renewable energy consumption is not a solution to reduce CO2 emissions.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/435254b4ece0efdf2ac52ed4984234c2d6796791

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Citations in the corpus

The connection between urbanization and carbon emissions: a panel evidence from West Africa (2020, background): “Pata (2018) researched on Turkey for the period 1974–2014.”
An empirical analysis of the determinants of CO2 emissions in ‎GCC countries (2020, methodology): “(2004) scaled LM and Baltagi et al. (2012) biascorrected scaled LM, are implemented to all variables considered in the analysis.4 Then, unit root tests are applied to check their order of integration.”
Financial Development, Technological Innovation and Income Inequality: Time Series Evidence from Turkey (2021, neutral): “…is gini index as an indicator of income inequality (Nikoloski 2013); GDPt is economic growth proxied by per capita real income (constant 2010 US $) (Pata 2018); TIt is technological innovation proxied by total number of patent applications (Tang and Tan 2013); FD1t is domestic credit provided by…”
Sustainability of the Moderating Role of Financial Development in the Determinants of Environmental Degradation: Evidence from Turkey (2021, background): “At that point, near assessments have a lot of the composing that focused in on a couple of pointers of CO2 releases in Turkey [3,7,41,42]; regardless, the fundamental question of how financial progression impacts characteristic degradation in Turkey really requires further assessment.”
Does ICT trade facilitate renewable energy transition and environmental sustainability? Evidence from Bangladesh, India, Pakistan, Sri Lanka, Nepal and Maldives (2020, background): “…in favor of economic growth in the initial phases attributing to adverse environmental consequences which, beyond a certain growth threshold, phases out to ensure environmental welfare in the latter stages of growth (Pata 2018; Murshed et al. 2020b; Muhammad et al. 2020; Murshed 2020c, d).”