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Export product diversification and the environmental Kuznets curve: evidence from Turkey

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Abstract

Countries try to stabilize the demand for energy on one hand and sustain economic growth on the 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 structural breaks 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 on 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.

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Notes

  1. Besides, some studies focus on the energy consumption–economic growth nexus. For a detailed review of the literature, see, for example, Omri (2014), Ozturk (2010), and Payne (2010).

  2. Note that another branch of literature claims that data measurements in controls can be leading to biased support for the EKC hypothesis (see, e.g., Itkonen, 2012; Kaika and Zervas, 2013a, b).

  3. We refer to the recent papers of Ageliki and Ioannis (2016), Bölük and Mert (2015), and Tutulmaz (2015) for a brief overview of Turkey’s CO2 emissions, economy, and energy sector, and international trade.

  4. In other words, finding the diversification of exports to positively contribute to CO2 emissions implies that the relationship between two variables is negative. The positive sign implies that the concentration of exports positively contributes to CO2 emissions. We refer to Papageorgiou and Spatafora (2012) for the technical details and calculation method of the export product diversification (Theil) index.

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Acknowledgments

We would like to express our gratitude to five anonymous reviewers and the editor (Philippe Garrigues) for their valuable comments and suggestions, which substantially improved the paper. All the remaining errors are our own.

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Authors and Affiliations

  1. Istanbul Medeniyet University, Istanbul, Turkey

    Giray Gozgor

  2. Hakkari University, Hakkari, Turkey

    Muhlis Can

Authors
  1. Giray Gozgor
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  2. Muhlis Can
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Correspondence to Giray Gozgor.

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Responsible editor: Philippe Garrigues

Appendix 1

Appendix 1

Table 6 Descriptive summary statistics and the description of variables: 1971–2010
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Gozgor, G., Can, M. Export product diversification and the environmental Kuznets curve: evidence from Turkey. Environ Sci Pollut Res 23, 21594–21603 (2016). https://doi.org/10.1007/s11356-016-7403-9

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