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Does the pollution haven hypothesis prevail in Turkey? Empirical evidence from nonlinear smooth transition models

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Abstract

The pollution haven hypo thesis (PHH) postulates that foreign direct investment (FDI) inflows can increase environmental deterioration in developing countries as multinational firms tend to transfer their dirty industries to these countries. Turkey, as a developing economy, has witnessed intense FDI inflows over the last decades. Within this scope, the goal of this paper is to examine whether the pollution haven hypothesis (PHH) prevails in Turkey within the scope of the environmental Kuznets curve (EKC) hypothesis over the period 1970–2016. To that end, the paper employs unit root and cointegration methods based on the nonlinear smooth transition models. The empirical findings of the paper indicate that both hypotheses are valid in Turkey. The findings also imply that environmental quality in Turkey is negatively related to electricity production from renewable energy sources.

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Availability of data and materials

The data sets used and/or analysed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. Department of Economics, Kirsehir Ahi Evran University, Kirsehir, Turkey

    Umit Bulut & Gulbahar Ucler

  2. Department of Economics, University of Pretoria, Pretoria, South Africa

    Roula Inglesi-Lotz

Authors
  1. Umit Bulut
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  2. Gulbahar Ucler
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  3. Roula Inglesi-Lotz
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Contributions

Umit Bulut: Conceptualization, formal analysis, methodology, project administration, and writing—original draft and review and editing. Gulbahar Ucler: Conceptualization, data curation, investigation, and writing—original draft. Roula Inglesi-Lotz: Supervision, validation, and writing—original draft.

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Correspondence to Umit Bulut.

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Bulut, U., Ucler, G. & Inglesi-Lotz, R. Does the pollution haven hypothesis prevail in Turkey? Empirical evidence from nonlinear smooth transition models. Environ Sci Pollut Res 28, 38563–38572 (2021). https://doi.org/10.1007/s11356-021-13476-7

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