Abstract
Globalization is the paradigm shift to a more integrated world economy broadly shaping economies and societies around the globe. The wave of globalization is much more eminent on its impact on increased energy demand, knowledge and technology transfer, trade, and financial capital flows. The present study focuses on Turkey, a fast-emerging economy that is no exception to the wave of globalization. This current study explores the dynamics between ecological footprints, energy consumption, and real income level for the case of Turkey in a carbon-income function while accounting for other covariate like globalization to avoid omitted variable bias. The study data spans from 1970 to 2017 on an annual frequency basis. The stationarity properties of the outlined variables were investigated. Subsequently, the equilibrium relationship between the variables is confirmed by the battery of recent robust estimation techniques. While to detect the causality of direction among the variables, the Modified Wald test causality test is utilized. This study reveals that an increase in energy consumption in Turkey reduces environmental pollution by a magnitude of 0.37% in the short run and 0.43% long run, while an increase in economic expansion dampens the quality of the environment 0.42% and 0.72% on both short and long-run basis. This is indicative given that Turkey is more energy conscious and energy efficient, while a positive statistically significant relationship is observed between real income level and ecological footprint and globalization index. The causality analysis also supports the growth-induced energy consumption hypothesis. The study further offers policy direction for the energy sector in Turkey in the face of global interconnectedness.
Highlights
Globalization in recent times has been up for discussion in many energy-environment pieces of literature due to the role and contribution to virtually all facet of endeavor
Five-Year Average theorize the following: (i) that environmental sustainability can be impacted significantly by globalization led growth, (ii) Turkey’s environmental sustainability can be affected by induced energy consumption, and (iii) the various factors under consideration have some degree of relationship and dynamics among them
This study analyzes the causality effect between the identified variables during the course of 1970–2017 for Turkey with a focus on the impact of energy consumption, ecological footprint, and real income on the environment, which is underscored by the rising need to examine the impact of economic activities on the climate
Summary
Globalization in recent times has been up for discussion in many energy-environment pieces of literature due to the role and contribution to virtually all facet of endeavor. Characterized by some level of instability (Akadiri et al 2019b), Turkey has continually sought economic development through increased external trade, diversification, and more importantly globalization This positions Turkey as a significant premise for assessing how globalization affects energy consumption and how this influences the environment. Though Turkey is not the major contributor to carbon emissions, its bid to maintain economic stability may adversely affect its carbon-cutting guarantees under the Paris Agreement This makes it imperative to first establish the connection between environmental impact and other variables such as globalization, energy consumption, and real income. Five-Year Average theorize the following: (i) that environmental sustainability (using ecological footprint as proxy) can be impacted significantly by globalization led growth, (ii) Turkey’s environmental sustainability can be affected by induced energy consumption, and (iii) the various factors under consideration have some degree of relationship and dynamics among them. “Empirical results and discussion” presents empirical results and discusses this empirical result, while “Conclusion” consists of the conclusion and policy implication of the study based on the findings from the study
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