The Dynamic Implications of Globalization and Renewable Energy in Turkey: Are They Vital for Environmental Sustainability? An SVAR Analysis

Yıl 2021, Cilt: 23 Sayı: 2, 288 - 314, 30.11.2021

Mohammed Alnour , Hayriye Atik

Öz

This study aims to analyze the dynamic effect of renewable energy use and globalization on the environmental quality in Turkey by utilizing quarterly time series data spanning the period 1990- 2017. After identifying the series order of stationarity by utilizing ADF test, this study makes use of SVAR model. The reason is that SVAR is powerful method in testing contemporaneous and past shock among the variables. In addition, SVAR is the powerful in variance decomposition and the possibility of observing long run forecast. The results disclose that environmental quality reacts negatively to the shocks in hydro energy and economic growth, while the globalization seems positively impact the degradation of the environment. These outcomes are consistent with relevant theories and empirical findings. The only striking result is the positive impact of biofuel and waste energy on the environment. Although Turkey has recently implemented a range of energy policies to promote renewables but some challenges still there, future policymaking should enhance the development in renewables and create more competitive environment for investment in the renewables market.

Anahtar Kelimeler

Turkey, SVAR, globalization, renewable energy, and ecological footprint

The Dynamic Implications of Globalization and Renewable Energy in Turkey

Öz

This study aims to analyze the dynamic effect of renewable energy use and globalization on the environmental quality in Turkey by utilizing quarterly time series data spanning the period 1990- 2017. After identifying the series order of stationarity by utilizing ADF test, this study makes use of SVAR model. The reason is that SVAR is powerful method in testing contemporaneous and past shock among the variables. In addition, SVAR is the powerful in variance decomposition and the possibility of observing long run forecast. The results disclose that environmental quality reacts negatively to the shocks in hydro energy and economic growth, while the globalization seems positively impact the degradation of the environment. These outcomes are consistent with relevant theories and empirical findings. The only striking result is the positive impact of biofuel and waste energy on the environment. Although Turkey has recently implemented a range of energy policies to promote renewables but some challenges still there, future policymaking should enhance the development in renewables and create more competitive environment for investment in the renewables market.

Anahtar Kelimeler

SVAR, globalization, renewable energy, and ecological footprint, Turkey

Kaynakça

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