Paper prepared for the 19th Annual Conference of ETSG, 14-16 September 2017, Florence-Italy TRADE LIBERALIZATION AND ENVIRONMENTAL DEGRADATION: A TIME SERIES ANALYSIS FOR TURKEY
Paper prepared for the 19th Annual Conference of ETSG, 14-16 September 2017, Florence-Italy TRADE LIBERALIZATION AND ENVIRONMENTAL DEGRADATION: A TIME SERIES ANALYSIS FOR TURKEY
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发表时间:
2017
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通讯作者:
B. Balin;H. Akan;Y. B. Altaylıgil
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作者:
B. Balin;H. Akan;Y. B. Altaylıgil
The relationship between trade liberalization and environmental degradation has become a popular issue in environmental economics in the last decades. In view of Turkey’s position, as one of the main contributors to carbon dioxide (CO2) emissions in Europe, it is vital to conduct a study to identify the main determinants of CO2 emissions. This study investigates the causal relationship between CO2 emissions (as a proxy of environmental degradation), trade openness, economic growth, energy consumption and foreign direct investment for the period 1974-2013. The long-run relationship is examined by the autoregressive distributed lag (ARDL) bounds testing approach to cointegration and error correction method (ECM). The results of the long model indicate that (i) the inverted U shape relationship between economic growth and CO2 emissions exist, (ii) trade openness has positive impact on CO2 emissions, (iii) foreign direct investment and energy consumption are positively related to CO2 emissions.