Abstract:

This study aims to investigate the impact of agricultural added value, forest areas, economic growth, renewable and non-renewable energy consumption (REC-NREC) on environmental quality using panel Common Corelated Effects (CCE) model for coordinated market economies for the period 1990-2016. According to the long-term coefficients obtained from the panel CCE model, it has been determined that the forest areas increase the environmental quality, in other words, it reduces the carbon dioxide (CO2) emissions, and the NREC and economic growth have a negative effect on the environment quality. Moreover, It has been observed that agricultural added value and REC do not have an effect on environmental quality. Finally, the causality relationship between variables is investigated with Dumitrescu – Hurlin test. With the applied causality test, there is bidirectional causality relationship between agriculture and CO2 emissions; agriculture and NREC; REC and NREC.

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