Abstract:

As Turkiye celebrates its 100th year, planning for sustainable and inclusive economic growth for Turkiye's future is crucial. In this context, this paper investigates the association between economic evolution and CO2 releases, energy usage, and gross fixed capital formation; utilizing the Bounds Cointegration test and Granger-causality test during the period spanning from 1990 to 2021. The results validate the long-run relationship between economic evolution and CO2. Moreover, the findings endorse the neutrality hypothesis. For policymakers, it’s crucial to champion investments in renewable energy platforms, potentially by offering incentives such as tax breaks. Concurrently, the correlation between economic progress and growing CO2 releases signals the importance of pushing for cleaner industrial processes and enhanced energy efficiency. Moreover, given the varied findings of several studies, it's necessary to perpetuate ongoing research to base policies on the latest and most exact data present.

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