Abstract:

This article explores the existence of the Cevresel Kuznets Curve (ECC) in Turkey for the period 1960 to 2014. For this purpose, Maki (2012) has been used an integration test that allows structural breakdowns. The ECC hypothesis suggests that there is a reverse U-shaped relationship between emissions and economic growth. CO2 emissions per person, GDP per person and GDP per person's square equalization relationship are the basis of the ECC hypothesis. According to the analysis of integration, there is a long-term relationship between the variables. FMOLS results have confirmed the reliability of long-term results. The empirical results confirm the validity of the ECC hypothesis that there is a reverse U-shaped relationship between CO2 emissions and economic growth in Turkey. The recovery point is $3640,95. The energy derived from fossil fuels is an important factor in environmental pollution. To meet the energy needs, policy makers need to increase their interest in renewable and clean energy sources instead of fossil fuels. The interest of local and foreign investors in this sector needs to be increased. In particular, the investment will increase with the government’s incentives. These incentives include the assurance of the purchase of energy from a certain value, the allocation of space to investors, the creation of technological substructs, etc. can be counted. Other policy suggestions of theoretical and empirical results were suggested at the end of the study.

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