Testing Sectoral Validity of Pollution Haven Hypothesis for Türkiye’s Energy and Waste Sector

Öz

The increase in environmental standards in developed countries and the efforts of developing countries to attract foreign direct investments (FDI) offer both a theoretical and an empirical research area. In practice, this situation, which can be seen as a shift of investments to countries with looser policies in order to avoid the costs of environmental regulations, is called the pollution haven hypothesis (PHH). In this study, the existence of the mentioned hypothesis for Türkiye's waste and energy sector is investigated. In order to test the hypothesis, linear time series analysis methods are used in the study. When the findings are examined, it is observed that the hypothesis is valid in both sectors.

Anahtar Kelimeler

• Environmental economics
• pollution haven hypothesis
• time series analysis

Türkiye’nin Enerji ve Atık Sektörü İçin Kirlilik Cenneti Hipotezinin Sektörel Geçerliğinin Test Edilmesi

Öz

Gelişmiş ülkelerde çevre standartlarının artması ve gelişmekte olan ülkelerin doğrudan yabancı yatırımları (FDI) çekme çabaları hem teorik hem de ampirik bir araştırma alanı sunmaktadır. Uygulamada, çevresel düzenlemelerin maliyetlerinden kaçınmak için yatırımların daha gevşek politikalara sahip ülkelere kayması olarak görülebilecek bu durum, kirlilik cenneti hipotezi (PHH) olarak adlandırılmaktadır. Bu çalışmada söz konusu hipotezin Türkiye atık ve enerji sektörü için varlığı araştırılmaktadır. Çalışmada hipotezi test etmek için doğrusal zaman serileri analiz yöntemleri kullanılmıştır. Bulgular incelendiğinde hipotezin her iki sektörde de geçerli olduğu görülmektedir.

Anahtar Kelimeler

• Çevre ekonomisi
• kirlilik cenneti hipotezi
• zaman serisi analizi

Kaynakça

1. Akbostanci, E., Tunc, G. I., & Türüt-Aşik, S. (2007). Pollution haven hypothesis and the role of dirty industries in Türkiye's exports. Environment and Development Economics, 12(2), 297-322.
2. Chaudhry, I. S., Yin, W., Ali, S. A., Faheem, M., Abbas, Q., Farooq, F., & Ur Rahman, S. (2021). Moderating role of institutional quality in validation of pollution haven hypothesis in BRICS: a new evidence by using DCCE approach. Environmental Science and Pollution Research, 1-10.
3. Chowdhury, A., & Mavrotas, G. (2006). FDI and growth: what causes what?. World economy, 29(1), 9-19.
4. Copeland, B. R., & Taylor, M. S. (1994). North-South trade and the environment. The quarterly journal of Economics, 109(3), 755-787.
5. Dickey, D. A., and Fuller, W. A. (1979), "Distribution of the Estimators for Autoregressive Time Series With a Unit Root," Journal of the American Statistical Association, 74, 427A31.
6. Dietzenbacher, E., & Mukhopadhyay, K. (2007). An empirical examination of the pollution haven hypothesis for India: towards a green Leontief paradox?. Environmental and Resource Economics, 36, 427-449.
7. Engle, R. F., & Granger, C. W. (1987). Co-integration and error correction: representation, estimation, and testing. Econometrica: journal of the Econometric Society, 251-276.
8. Eskeland, G. S., & Harrison, A. E. (2003). Moving to greener pastures? Multinationals and the pollution haven hypothesis. Journal of development economics, 70(1), 1-23.

9. Grossman, G. M., & Krueger, A. B. (1991). Environmental impacts of a North American free trade agreement.
10. Haug, A. A., & Ucal, M. (2019). The role of trade and FDI for CO2 emissions in Türkiye: Nonlinear relationships. Energy Economics, 81, 297-307.
11. Johansen, S. (1995). Identifying restrictions of linear equations with applications to simultaneous equations and cointegration. Journal of econometrics, 69(1), 111-132.
12. Karagöz, K. (2007). TÜRKİYE’DE DOĞRUDAN YABANCI YATIRIM GİRİŞLERİNİ BELİRLEYEN FAKTÖRLER: 1970–2005. Yaşar Üniversitesi E-Dergisi, 2(8), 929-948.
13. Karakaya, E., Bostan, A., & Özçağ, M. (2019). Decomposition and decoupling analysis of energy-related carbon emissions in Türkiye. Environmental Science and Pollution Research, 26, 32080-32091.
14. Karasoy, A. (2019). Drivers of carbon emissions in Türkiye: considering asymmetric impacts. Environmental Science and Pollution Research, 26(9), 9219-9231.
15. Kennedy, P. (2008). A Guide to Econometrics. 6. Edition, Blackwell Publishing.
16. McGuire, M. C. (1982). Regulation, factor rewards, and international trade. Journal of public economics, 17(3), 335-354.
17. Mert, M., & Caglar, A. E. (2020). Testing pollution haven and pollution halo hypotheses for Türkiye: a new perspective. Environmental Science and Pollution Research, 27, 32933-32943.
18. Phillips, P. C., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335-346.
19. Rezza, A. A. (2013). FDI and pollution havens: Evidence from the Norwegian manufacturing sector. Ecological Economics, 90, 140-149.
20. Say, N. P., & Yücel, M. (2006). Energy consumption and CO2 emissions in Türkiye: Empirical analysis and future projection based on an economic growth. Energy policy, 34(18), 3870-3876.
21. Sevüktekin, M., & Çınar, M. (2017). Ekonometrik zaman serileri analizi: EViews uygulamalı. Fifth Edition, Dora Publishing.
22. Siebert, H. (1977). Environmental quality and the gains from trade. Kyklos, 30(4), 657-673.
23. Singhania, M., & Saini, N. (2021). Demystifying pollution haven hypothesis: Role of FDI. Journal of Business Research, 123, 516-528.
24. Tayyar, A. E. (2022). Testing Pollution Haven and Pollution Halo Hypotheses for the Energy Sector: Evidence from Türkiye. Business and Economics Research Journal, 13(3), 367-383.
25. Terzi, H., & PATA, U. (2020). Is the pollution haven hypothesis (PHH) valid for Türkiye?. Panoeconomicus, 67(1).
26. Toda, H.Y. & Yamamoto (1995) Statistical inference in Vector Autoregressions with possibly integrated processes. Journal of Econometrics, 66, 225-250.
27. Turkish Electricity Transmission Corporation (TEİAŞ) (2021). Türkiye Electricity Generation-Transmission Statistics for the Year 2021, https://www.teias.gov.tr/turkiye-elektrik-uretim-iletim-istatistikleri, Access Date: 16.05.2023
28. Wang, H., Dong, C., & Liu, Y. (2019). Beijing direct investment to its neighbors: A pollution haven or pollution halo effect?. Journal of Cleaner Production, 239, 118062.
29. Zarsky, L. (1999). Havens, halos and spaghetti: untangling the evidence about foreign direct investment and the environment. Foreign direct Investment and the Environment, 13(8), 47-74.