Türkiye’de EKC Hipotezinin Varlığına Dair Araştırma: Çoklu Doğrusal Bağıntı Durumunda Elastikiyetleri Kullanan Bir Yaklaşım

Abstract

This paper provides and discusses the test results of the well-known Environmental Kuznets Curve (EKC) hypothesis for Turkey over the period between 1990 and 2015. While we are testing the existence of the EKC hypothesis for Turkey, we take into consideration the multicollinearity problem. Our empirical analysis is based on interpreting the elasticity coefficients of income for the short- and long-term. We expect to accept the validity of EKC hypothesis that the short-run coefficient is positive and greater than the long-run coefficient. If so, it means that increasing income level reduces environmental degradation. We used ARDL model to search for the validity of the EKC hypothesis. In addition, we included two rarely used and important control variables into the model: economic complexity and environmental policy stringency. Our findings indicate that there is no enough proof for the validity of the EKC hypothesis in Turkey since the short-term elasticity is smaller than the long-term elasticity. Hence, we can conclude that economic degradation rises when per capita income rises. Secondly, an increasing economic complexity reduces environmental damages in the long term. Finally, as it is expected, the coefficient of environmental policy stringency indicator is not significant for Turkey.