The aim of the study is to investigate the impact of income inequality on environmental quality in Turkey within the Environmental Kuznets Curve framework. In order to observe the short-run and long-run effects of income inequality on environmental quality, an autoregressive distributed lag bounds test on CO2 emission has been employed for the period 1963–2011 of Turkey. The results of the analysis reveal that there is a negative association between CO2 emission level and income inequality, which implies that increasing income inequality reduces environmental degradation in Turkey. Hence, a greater inequality in the society leads to less aggregate consumption in the economy due to lower propensity to emit in the richer households resulting in better environmental quality. The findings confirm an argument in the existing literature, which suggests that for developing countries, until a certain level of development, environmental degradation increases as income inequality in the society decreases. The results also confirm the Environmental Kuznets Curve hypothesis.
The study analyzes the role of financial development on CO2 emissions based on the primary studies in the existing literature. However, the heterogeneity in reported effect size estimates of the primary studies complicates to test the competing hypotheses for the role of financial development on CO2 emissions. The paper tries to determine and quantify the representative empirical genuine effect of financial development on CO2 emissions, if any. To address the issue, a meta-regression analysis has been carried out for 275 estimation results from 72 primary studies. We have found a substantial publication selection bias in the literature due to the design characteristics of the primary studies. The results suggest the presence of an authentic positive empirical effect of financial development on CO2 emissions beyond publication selection bias. Hence, financial development leads to environmental degradation. The effect of financial development on carbon emissions changes both in magnitude and direction depending on which financial development indicator is used, which estimation technique is employed, which countries or region are included and which time period is analyzed.
To investigate the role of governance on environmental quality, two hypotheses are developed; when good governance practices dominate governance structures, then improvement in governance levels leads to better environmental outcomes, and when bad governance practices dominate governance structures, then improvement in governance levels leads to deterioration in environmental outcomes. To test these hypotheses for 115 countries clustered as high, middle, and low income over the period of 2000 to 2015, system generalized method of moments is employed. The results show that an improvement in governance increases environmental quality in high income countries, while it decreases environmental quality in middle-and low-income countries. We concluded that high-income countries should improve governance structures to get better environmental outcomes without changing their environment-oriented policies and governance practices, and middle-and low-income countries should bring in structural changes to their governance systems by prioritizing environmental outcomes over economic outcomes for improving environmental quality.
In the literature, there are few studies analyzing the impacts of foreign direct investment and foreign portfolio investments on house prices. We employed quarterly data for 20 EU countries over the 2007-2013 period in order to examine the separate impacts of foreign direct investment and portfolio investment on the house prices for the period of post-financial crisis. The results of Panel Vector Auto Regression indicate that foreign direct investment negatively affects house prices, and foreign portfolio investment positively affects house prices. Also, the results indicate that increase in house prices lead to decrease both foreign direct investment and foreign portfolio investment. Moreover, results also indicate that foreign direct investment and portfolio investments are substitutes rather than complements.
The chapter investigates the role of FDI on growth, the role of FDI on environmental quality, and the role of environmental quality on FDI in 23 emerging market economies over the period of 1993-2014 by panel VAR analysis. It observes that FDI contributes to economic growth and environmental degradation in emerging market economies. In addition, environmental degradation attracts FDI inflows into host emerging market economies. The results support pollution haven hypothesis and contradict pollution halo hypothesis.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.