THE RELATIONSHIP BETWEEN ECONOMIC GROWTH AND CAPACITY FOR GENERATING CO2 EMISSIONS: TESTING THE VALIDITY OF THE ENVIRONMENTAL KUZNETS CURVE FOR TURKEY

Yıl 2020, Cilt: 16 Sayı: 4, 840 - 853, 31.12.2020

Murat Pütün Mehmet Sedat Uğur

https://doi.org/10.17130/ijmeb.853414

Öz

This study is an attempt to measure the validity of the inverted U-shaped Environmental Kuznets
Curve through empirical treatment with the help of ARDL bound test and vector error correction model.
The study then aims to find whether there is a long-term relationship between economic growth and
environmental pollution. In the literature, the methodology is used by different researchers for different
countries. The findings, in general, endorse the presence of inverted U association between growth of
the economy and carbon emissions releases. Given this framework, the need for empirical assessment
becomes increasingly relevant in partial contribution to policy innovations for the purpose of pollution
reduction. The findings for the study supports environmental Kuznets curve in Turkey for the period of
1960-2013.

Anahtar Kelimeler

Carbon Emission, Industrial Pollutants, ARDL Model.

Kaynakça

• Agras, J., & Chapman, D. (1999). The Kyoto protocol, CAFE standards, and gasoline taxes. Contemporary Economic Policy, 17(3), 296-308.
• Akinlo, A. E. (2006). The stability of money demand in Nigeria: An autoregressive distributed lag approach. Journal of Policy Modeling, 28 (4) 445-452.
• Andreoni, J., & Levinson, A. (2001). The simple analytics of the environmental Kuznets curve. Journal of Public Economics, 80, 269-286.
• Arrow, K., Bolin, B., Costanza, R., Dasgupta, P., Folke, C., Holling, C. S., Jansson, B.O., Levin, S., Meller, K.G., Perrings, C., & Pimentel, D. (1995). Economic growth, carrying capacity, and the environment. Ecological Economics, 15(2), 91-95.
• Barbier, E. B. (1997). Introduction to the environmental Kuznets curve special issue. Environment and Development Economics, 2 (4), 369-381.
• Beckerman, W. (1992). Economic growth and the environment: Whose growth? Whose environment? World Development, 20, 481-496.
• Brown, R. L., Durbin, J., & Evans, J. M. (1975). Techniques for testing the constancy of regression relationships over time. Journal of the Royal Statistical Society: Series B (Methodological), 37(2), 149-163.
• Chimeli, A. B., & Braden, J. B. (2002). The environmental Kuznets curve and optimal growth. Palisades, NY: Columbia University.
• Cole, M. A., Rayner, A. J., & Bates, J. M. (1997). The environmental Kuznets curve: An empirical analysis. Environment and Development Economics, 2(4), 401–16.
• Dasgupta, S., Laplante, B., Wang, H., & Wheeler, D. (2002). Confronting the environmental Kuznets curve. Journal of Economic Perspectives, 16, 147-168.
• de Bruyn, S. M. (1997). Explaining the environmental Kuznets curve: Structural change and international agreements in reducing sulphur emissions. Environment and Development Economics, 2(4), 485- 503.
• Dinda, S. (2004). Environmental Kuznets curve hypothesis: A survey. Ecological Economics, 49, 431- 455.
• Droge, S. (2016). The Paris agreement 2015, turning point for the international climate regime. SWP Research Paper 4/2016, German Institute for International and Security Affairs, Berlin.
• Ekins, P. (1997). The Kuznets curve for the environment and economic growth: Examining the evidence. Environment and Planning A, 29, 805-830.
• Elliot, B. E., Rothenberg, T. J., & Stock, J. H. (1996). Efficient tests of the unit root hypothesis. Econometrica, 64(8), 13-36.
• Figueroa, E., & Pasten, R. (2009). Country-specific environmental Kuznets curves: A random coefficient approach applied to high-income countries. Estudios de Economia, 36(1), Junio, 5-32.
• Galeotti, M., Lanza, A., & Pauli, F. (2006). Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise. Ecological Economics, 57, 152-163.
• Grossman, G., & Krueger, A.B. (1991). Environmental impact of a North American free trade agreement. National Bureau of Economic Research Working Paper, No. 3914, NBER, Cambridge, MA, USA.
• Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110(2), 353-377.
• Halicioglu, F. (2009). An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey. Energy Policy, 37(3), 1156-1164.
• Holtz-Eakin, D., & Selden, T. M. (1995). Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics, 57(1), 85-101.
• Horvath, R. J. (1997). Energy consumption and the environmental Kuznets curve debate. Department of Geography, University of Sydney, Australia (Mimeo).
• Jones, L. E., & Manuelli, R. E. (2001). Endogenous policy choice: The case of pollution and growth. Review of Economic Dynamics, 4, 369–405.
• Khanna, N., & Plassmann, F. (2004). The demand for environmental quality and the environmental Kuznets curve hypothesis. Ecological Economics, 51(3-4), 225-236.
• Kripfganz, S., & Schneider, D. C. (2018). Ardl: Estimating autoregressive distributed lag and equilibrium correction models. London Stata Conference, September 7.
• Kuznets, S. (1955). Economic growth and income inequality. American Econ. Rev., 49, l-28.
• Lopez, R. (1994). The environment as a factor of production: The effects of economic growth and trade liberalization. Journal of Environmental Econ. and Management, 27, 163-184.
• Ozturk, I., & Acaravci, A. (2013). The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey. Energy Economics, 36, 262-267.
• Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development. Working Paper, WP238, Technology and Employment Programme, International Labor Office, Geneva.
• Panayotou, T., Sachs, J., & Peterson, A. (1999). Developing countries and the control of climate change: Empirical evidence, CAER II Discussion Paper, n. 45, Cambridge, MA.
• Perman, R., & Stern, D. I. (2003). Evidence from panel unit root and cointegration tests that the environmental Kuznets curve does not exist. The Australian Journal of Agricultural and Resource Economics, 47(3), 325-347.
• Pesaran, M. H., & Shin, Y. (1998). An autoregressive distributed-lag modelling approach to cointegration analysis. Econometric Society Monographs, 31, 371-413.
• Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
• Selden, T. M., & Song, D.(1994). Environmental quality and development: Is there a Kuznets curve for air pollution emissions? Journal of Environmental Econ. and Management, 27 (2), 147-162.
• Shafik, N., & Bandyopadhyay, S. (1992). Economic growth and environmental quality: Time series and cross-country evidence. World Bank Policy Research Working Paper, No 904.
• Shahbaz, M., & Sinha, A. (2019). Environmental Kuznets curve for CO2 emissions: A literature survey. Journal of Economic Studies, 46(1), 106-168.
• Stern, D. I., Common, M. S., & Barbier, E. B. (1996). Economic growth and environmental degradation: The environmental Kuznets curve and sustainable development. World Development, 24(7), 1151-1160.
• Stern, D. I. (2004). The rise and fall of the environmental Kuznets curve. World Development, 32(8), 1419–1439.
• Stern, D.I. (2015). The environmental Kuznets curve after 25 years, CCEP Working Paper, No.1514, Crawford School of Public Policy, The Australian National University.
• Taguchi, H. (2001). Do developing countries enjoy latecomers’ advantages in environmental management technology: Analysis of the environmental Kuznets curve. International Review for Environmental Strategies (Institute for Global Environmental Strategies), 2(2), 263-276.
• Taguchi, H. (2012). The enviromental Kuznets curve in Asia-the case of sulphur and carbon emissions. Asia-Pacific Development Journal, 19(2), 77-92.
• Uchiyama K. (2016). Environmental Kuznets curve hypothesis. In: Environmental Kuznets curve hypothesis and carbon dioxide emissions: Springer briefs in economics (pp. 11-29). Tokyo: Springer.
• World Bank. (1992). World development report 1992: Development and the environment. New York: Oxford University Press.