An econometric study of CO2 emissions, energy consumption, income and foreign trade in Turkey

This study attempts to examine empirically dynamic causal relationships between carbon emissions, energy consumption, income, and foreign trade in the case of Turkey using the time series data for the period 1960-2005 This research tests the interrelationship between the variables using the bounds testing to cointegration procedure The bounds test results indicate that there exist two forms of long-run relationships between the variables In the case of first form of long-relationship, carbon emissions are determined by energy consumption, income and foreign trade In the case of second long-run relationship, income is determined by carbon emissions, energy consumption and foreign trade An augmented form of Granger causality analysis is conducted amongst the variables The long-run relationship of CO2 emissions, energy consumption, income and foreign trade equation is also checked for the parameter stability The empirical results suggest that income is the most significant variable in explaining the carbon emissions in Turkey which is followed by energy consumption and foreign trade Moreover, there exists a stable carbon emissions function The results also provide important policy recommendations

The paper is an effort to fill the gap in the energy literature with a comprehensive country study of Pakistan. We investigate the relationship between CO2 emissions, energy consumption, economic growth and trade openness in Pakistan over the period of 1971–2009. Bounds test for cointegration and Granger causality approach are employed for the empirical analysis. The result suggests that there exists a long-run relationship among the variables and the Environmental Kuznets Curve (EKC) hypothesis is supported. The significant existence of EKC shows the country's effort to condense CO2 emissions and indicates certain achievement of controlling environmental degradation in Pakistan. Furthermore, we find a one-way causal relationship running from economic growth to CO2 emissions. Energy consumption increases CO2 emissions both in the short and long runs. Trade openness reduces CO2 emissions in the long run but it is insignificant in the short run. In addition, the change of CO2 emissions from short run to the long span of time is corrected by about 10% yearly.

Environmental Kuznets Curve hypothesis in Pakistan: Cointegration and Granger causality

The impact of energy consumption, income and foreign direct investment on carbon dioxide emissions in Vietnam

The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case

Literature on the environmental Kuznets curve (EKC) is examined, focussing on the possibility that the EKC may be explained by trade patterns. If significant, this trade effect would cast doubt on the oft-stated conclusion that economic growth automatically leads to environmental improvement. Research has been insufficient, although a number of promising approaches have been developed. Although evidence on the pollution-haven hypothesis is mixed, there is enough to suggest that the EKC development path may not be available to today's developing countries. Other problems cast doubt on whether the EKC exists in any relevant sense at all.

The environmental kuznets curve: a literature survey

Evidence that the environmental Kuznets curve (EKC) may be explained by trade patterns casts doubt on the oft-stated conclusion that economic growth automatically leads to environmental improvement. Trends in net exports as a proportion of consumption for both USA and UK trade with SACU were examined for various dirty industries. Some evidence of pollution haven effects is found, although a similar trend for clean industries suggests that this effect is weak. However, even a general shift in manufacturing industries from North to South (as opposed to a shift in specifically dirty industries) may explain the EKC to some extent. The environmental Kuznets curve describes a relationship that has been found empirically between per capita income and certain indicators of environmental degradation. At early stages of development, the levels of certain pollutants rise with increases in per capita income, while at higher levels of development, environmental degradation is seen to decrease with further increases in per capita income. These results give rise to an inverted U-shaped curve relating economic growth to environmental degradation, reminiscent of the relationship hypothesised by Simon Kuznets (1955) between economic growth and income inequality. One of the criticisms of the environmental Kuznets curve (EKC) hypothesis is based on the observation that many of a developed country's manufactured goods are produced abroad. The argument asserts that the improvement in environmental quality at higher levels of per capita income can be explained (at least in part) by this tendency of developed countries to import manufactured goods from less developed countries. Thus, the EKC indicates that pollution is shifted to developing countries rather than abated as a country reaches higher levels of development. One version of this argument is the so-called pollution haven hypothesis (PHH), which contends that pollution intensive manufacturing relocates from developed to developing countries where environmental regulations are assumed to be less stringent. This paper aims to assess the extent to which this is the case for the United States and the United Kingdom in their trade relationships with the Southern African Customs Union (SACU) region. The paper is organised as follows. Section 1 addresses the context and importance of the research, and briefly outlines its goals. Section 2 summarises previous literature on the issue of trade and the EKC. Section 3 explains the research methodology adopted, whilst section 4 presents the results. The results are discussed in section 5, while section 6 concludes.

https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1813-6982.2005.00055.x

Geoff Antrobus

Papers

The environmental kuznets curve: a literature survey

Trade and the environmental kuznets curve: is southern africa a pollution haven?