Analyzing the load capacity curve hypothesis for the Turkiye: A perspective for the sustainable environment

Abstract

Although it takes time to achieve a sustainable environment, this goal can be possible with the Sustainable Development Goals. The transition from gray energy sources to green in the 21st century is among the important policy goals of global economies. Since this process is long, countries focus on energy efficiency as part of their carbon reduction policies. In this context, this study investigates the impact of clean energy technologies on environmental quality in Turkiye. Using the load capacity curve (LCC) hypothesis, human capital, income, and natural resources are theoretically added to the balance model. The novel Augmented ARDL with Fourier terms approach is used in the empirical analysis. As a result of the analysis, the LCC hypothesis is valid, and income will support environmental quality after a certain level. While human capital increases environmental quality, natural resources bring environmental pollution. Finally, it is determined that clean energy technologies have not yet reached the level that enables carbon reduction. The finding that clean energy technologies are insufficient for Turkiye, as a result of empirical analysis, shows the uniqueness of this study. With our new findings, policymakers can take action for a sustainable environment. Since Turkiye has to ensure energy security due to its regional characteristics, it should increase investments in clean energy technologies. Based on empirical findings, clean energy technologies will gain momentum as policymakers support human capital.