Abstract:

Purpose: The main purpose of the study is to investigate the effects of renewable energy sources on environmental degradation. Design/Methodology: The effect of renewable energy consumption, non-renewable energy consumption, trade openness, and GDP per capita on carbon emissions between 1990-2015 has been analyzed by ARDL bound test approach in Turkey. In addition, the linear and parabolic effects of economic growth on environmental pollution have examined and the validity of the Environmental Kuznets Curve has been tested. Findings: According to the ARDL bound test results, there is an inverted U-shaped relationship between CO2 emissions and GDP per capita in the short and long-term. Therefore, the Environmental Kuznets Curve is valid in Turkey. While a negative relationship between renewable energy consumption and CO2 emissions is determined, a positive relationship between non-renewable energy and carbon dioxide emissions is found. In addition, while the trade openness affects the environmental quality positively in the short term, it is concluded that it is statistically insignificant in the long term. Finally, while the impact of industrialization on environmental pollution is found statistically insignificant in the short term, it has a negative impact on environmental quality in the long term. Therefore, it is considered that investments in renewable energy sources should be increased to overcome problems such as environmental degradation and climate change. Limitations: The latest data on CO2 emissions in existing databases belong to 2015. Therefore, more up-to-date data could not be used. Originality/Value: Examining the impacts on the environmental quality of the renewable energy sector with ARDL bound testing by using the variables CO2 emission, GDP per capita, total energy use, openness ratio, renewable energy consumption and industrial sector value added in Turkey is the original value of the research.

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