Abstract:

Although many aspects of domestic private investment (DPRI) have been empirically studied in the literature, evidence regarding the effect of DPRI on environmental sustainability is rather nascent. This research attempts to fill this gap by investigating how DPRI in Turkey affected environmental degradation (namely ecological and carbon footprints) for the 1975-2017 period by employing Fourier-based approaches. The findings in this research indicate that employed variables (environmental degradation, income, energy use, and DPRI) have a long-run association in both proposed models. Furthermore, the dynamic relationship captured by the autoregressive distributed lag (ARDL) method shows that DPRI and primary energy use induce ecological and carbon footprints in the long-run, while income intensifies both environmental degradation indicators in the short-run. These results clearly indicate that DPRI threatens Turkey’s long-term environmental sustainability.

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