Abstract:

The liberalization of trade and the rapid increase in industrialization increases the CO2 emissions and share of countries in developing market economies in the global warming. In this context, the investigation of the exports, energy consumption, foreign direct investments and economic growth of Turkey in the developing market economy is whether there is an impact on carbon dioxide emissions. In this study, the Vector Error Correction Model (VECM) was used to identify short-term effects with the ARDL border test approach using annual data from the 1990-2015 period. According to the results of the ARDL border test approach, a long-term statistically meaningful and positive relationship between CO2 emissions and foreign direct investments and energy consumption was detected, while a statistically meaningless and negative relationship between exports and economic growth was detected. Furthermore, an increase of 1% in foreign direct investments increases CO2 emissions by 9% and an increase of 1% in energy consumption increases CO2 emissions by 76%. The limitation of this study can be expressed as the fact that energy consumption data have been calculated until 2015 and that the series has not continued.

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