The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey

Abstract

Turkey's rapid economic growth has attracted attention, as resulting energy demand has increased, and the energy consumed in Turkey is primarily derived from non-renewable sources. In this context, this study investigates the long- and short-term effects of gross domestic product (GDP), health expenditure (HE), and renewable (REC) and non-renewable energy consumption (NREC) on CO2 emissions in Turkey from 1980 to 2016. The autoregressive distributed lag (ARDL) method is used to examine long- and short-term effects. The Toda–Yamamoto causality test is also employed to study the relationships between the variables. The results of the ARDL method reveal that the variables have a cointegration relationship. The findings suggest that GDP and NREC are correlated to an increase in CO2, whereas HE and REC are correlated to reducing CO2 in the long term. Only GDP and REC are determined to be correlated to an increase CO2 in the short term. According to the Toda–Yamamoto causality test results, a unidirectional causality relationship exists from GDP, HE, REC, and NREC to CO2. Subsequently, Turkish policymakers are encouraged to pursue policies that promote economic growth through the use of renewable resources, and invest more in health and renewable energy projects to combat environmental pollution.