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Export Product Diversification and the Environmental Kuznets Curve: Evidence from Turkey

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  • Gozgor, Giray
  • Can, Muhlis

Abstract

Countries try to stabilize the demand for energy on one hand and sustain economic growth on other, but the worsening global warming and climate change problems have put pressure on them. This paper estimates the environmental Kuznets curve over the period 1971–2010 in Turkey both in the short and the long run. For this purpose, the unit root test with one structural break and the cointegration analysis with multiple endogenous structural breaks are used. The effects of energy consumption and export product diversification on CO2 emissions are also controlled in the dynamic empirical models. It is observed that the environmental Kuznets curve hypothesis is valid in Turkey in both the short run and the long run. The positive effect of energy consumption on CO2 emissions is also obtained in the long run. In addition, it is found that a greater product diversification of exports yields higher CO2 emissions in the long run. Inferences and policy implications are also discussed.

Suggested Citation

  • Gozgor, Giray & Can, Muhlis, 2016. "Export Product Diversification and the Environmental Kuznets Curve: Evidence from Turkey," MPRA Paper 69761, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:69761
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    More about this item

    Keywords

    environmental Kuznets curve; energy consumption; export product diversification; time series modeling; structural breaks;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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