Abstract:

The aim of this study is to investigate the effects of financial development, renewable and non-renewable energy consumption and natural resource rents on carbon emissions in Turkey in the 1990-2015 period using ARDL, FMOLS ve CCR Models. This effect was analyzed in the context of two models by separating the energy consumption data. In the first model, it has been found that the effect of financial development on carbon emissions is positive, while the effect of renewable energy consumption and natural resource rents on carbon emissions is negative. In the second model, it has been determined that the effect of non-renewable energy consumption on carbon emissions is positive. Similar results were obtained with the first model in terms of the effect of financial development and natural resource rents on carbon emissions. Therefore, in order to improve the environmental quality in Turkey, it is necessary to increase the consumption of renewable energy and to direct the income from natural resources to domestic and renewable energy resources. The results of the analysis have important policy recommendations in terms of sustainable environment in the Turkish economy.

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