HOW ECONOMIC GROWTH AFFECTS EMISSIONS? A STUDY OF ENVIRONMENTAL KUZNETS CURVE IN DIFFERENT SECTORS IN TURKEY

Date

2022-9

Author

Sonmez, Hamdi Özgün

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The purpose of this study is to derive and estimate an econometric model between per capita carbon dioxide emissions of energy, industry, agriculture and waste sectors and gross value added per capita in order to test existence of each of the sectoral Environmental Kuznets Curve in Turkey over the period of 1990 - 2019. After that if EKC hypothesis holds for the sectors, Gross value added is used as an income indicator. CO2 emission of each sector is used as dependent variable, GVA and GVA2 are used as independent variables. Logarithm of the variables are used to have an inverted U-shaped curve. In order to do so different econometric techniques are used and based on Ordinary Least Squares regression technique results, waste sector has P-value of 0.1606 which is insignificant, meaning that it does not meet EKC hypothesis. When agriculture sector is checked it has a P-value of 0.0136 which is significant, which meets EKC hypothesis. Industry sector is also significant due to having P-value of 0.0692. Finally, energy sector has a P-value of 0.0177 which is also significant. From these results, it can be said that waste sector has no correlation between EKC hypothesis, but other sectors meet EKC hypothesis and in the long run increase in GVA in those sectors lead to decrease in CO2 emissions.

Subject Keywords

Carbon dioxide emissions, Environmental Kuznets Curve, Turnaround point, Gross value added, Sectors

URI

https://hdl.handle.net/11511/113716

Collections

Northern Cyprus Campus, Thesis