Export Product Diversification and the Environmental Kuznets Curve: Evidence from Turkey

Abstract

Countries try to stabilize the demand for energy on one hand and sustain economic growth on other, but the worsening global warming and climate change problems have put pressure on them. This paper estimates the environmental Kuznets curve over the period 1971-2010 in Turkey both in the short and the long run. For this purpose, the unit root test with one structural break and the cointegration analysis with multiple endogenous structural breaks are used. The effects of energy consumption and export product diversification on CO2 emissions are also controlled in the dynamic empirical models. It is observed that the environmental Kuznets curve hypothesis is valid in Turkey in both the short run and the long run. The positive effect of energy consumption on CO2 emissions is also obtained in the long run. In addition, it is found that a greater product diversification of exports yields higher CO2 emissions in the long run.Inferences and policy implications are also discussed.

Does export product quality matter for CO2 emissions? Evidence from China

“…It is also well known that sustained and rapid economic growth is crucial for any developing economy, not only to achieve convergence with developing countries, but also for creating new job opportunities, better infrastructure, health care systems, etc. (Gozgor and Can, 2016a). In other words, as per capita income increases, CO2 emissions systematically increase as well in developing economies, as we do observe in China.…”

“…5 It is observed that new variables for globalization are used in the studies investigating the relationship between international trade and CO2 emissions. For example, Gozgor and Can (2016a) analyzed the effects of export product diversification on CO2 emissions in Turkey, while Can and Gozgor (2016) investigated the effects of economic complexity on CO2 emissions in France within the context of the EKC hypothesis. 6 Export product quality is mainly measured by the unit price in the literature (e.g., Feenstra This structural transformation has also led to a significant increase in energy consumption in China, making it the world's largest energy consumer (Wang et al, 2013).…”

Export Diversification and CO2 Emissions: An Augmented Environmental Kuznets Curve

“…Focusing now on export structure, numerous empirical studies show a robust inverted U-shaped relationship between economic development and export diversification (Cadot et al, 2013;Cadot, Carrère, & Strauss-Kahn, 2011;IMF, 2014;Klinger & Lederman, 2004). To measure export diversification, we choose to calculate the Theil index for every single country-year observation because of its widespread use (Apergis et al, 2018;Cadot et al, 2011Cadot et al, , 2013Can & Gozgor, 2018;Gozgor & Can, 2016;IMF, 2014;Shahbaz et al, 2019). The Theil index is a concentration index; consequently, it is inversely proportional to the degree of export diversification.…”

Effects of export concentration on CO2 emissions in developed countries: an empirical analysis

“…However, the literature on international trade has recently realized the importance of export basket product concentration (or diversification) instead of the volume of international trade (trade openness) (Aditya and Acharyya, 2013;Agosin et al, 2012;Gozgor andCan, 2016a and2017a;Hausmann et al, 2007;Rodrik, 2006). However, our knowledge on the effect of these new variables on environmental degradation is very limited, and there is only a single study that analyzes the environmental degradation issue within export diversification as a new indicator of international trade (Gozgor and Can, 2016b). In their empirical study, Gozgor and Can (2016b) analyze the effects of export product diversification on carbon emissions within the EKC for the period from 1971 to 2010.…”