The relationship between energy consumption and economıc growth in the G7 countries: the time-varying asymmetric causality analysis

Tuna, Gülfen; Tuna, Vedat Ender; Aghalarova, Mirsariyya; Atasoy, Ahmet

doi:10.1108/ijesm-08-2021-0001

Cited by 5 publications

(2 citation statements)

References 48 publications

(66 reference statements)

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“…These align with the findings of Dong et al (2017), Steve et al (2021), Gyamfi et al. (2022c), Ghosh (2022), de Oliveira Sousa et al (2022 and Tuna et al (2022). This is consistent with what the authors predicted, and it supports the theoretical assumption that using renewable energy sources like wind, solar and hydropower improves ecological health in Turkey.…”

Section: Empirical Results and Discussionsupporting

confidence: 91%

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Bekun

Gyamfi

Etokakpan

et al. 2023

IJESM

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Purpose This purpose of this study is to explore the impact of global trend of economic integration and interconnectedness which has drawn the attention of world economies and their implications on trade inflow. This trajectory has its impact, either positive/negative, on key macroeconomic indicators, to say the least on environmental sustainability, especially emerging economies. To this end, the need to explore the connection between foreign direct investment (FDI) inflow and energy consumption amidst the wave of economic globalisation is timely and pertinent for the case of Turkey. Design/methodology/approach This study seeks to explore the interaction between the outlined variables in a carbon-income framework for annual time series data from 1970 to 2016. A series of econometrics strategies was used consisting of unit root tests to examine the stationarity properties of the highlighted series. Subsequently, Pesaran’s Bounds testing technique is used to explore the long-run equilibrium relationship between the highlighted variables in conjunction with the Johansen cointegration test. For long-run regression coefficients, Pesaran’s autoregressive distributed lag and dynamic ordinary least squares methodology are used, and innovative accounting approaches are used to explore the responsiveness of each variable on another. Findings Empirical results validate the pollution haven hypothesis (PHH) in the long run for the case of Turkey. Thus suggesting that FDI inflow induced environmental degradation in Turkey. Additionally, this study observed that renewable energy, on the contrary, improves the quality of the environment. This study also affirms the presence of the environmental Kuznets curve phenomenon, indicating that Turkey, at its early stage of economic trajectory, emphasis is on economic growth rather than environmental quality. This suggests a need for more deliberate action(s) by the government administrators to pursue cleaner FDI inflow and energy technologies and strategies to foster a clean environment in Turkey and a cleaner ecosystem at large. Originality/value This study is unique in its choice of variables which is in line with the United Nations Sustainable Development Goals (SDGs) agenda to be achieved by 2030 and is very limited in the extant literature. From the economic perspective, the effect of the PHH is of interest especially to ascertain the extent the interplay among the variables has on the economy of Turkey. The empirical insights on PHH hypothesis have received less documentation in the extant literature especially for emerging economy like Turkey. Thus, this study seeks to revisit this theme for Turkey with aim to presents environmentally sustainable strategies without compromise for economic growth. Thus, this study seeks to revisit this theme.

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Section: Empirical Results and Discussionsupporting

confidence: 91%

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Bekun

Gyamfi

Etokakpan

et al. 2023

IJESM

View full text Add to dashboard Cite

show abstract

“…The feedback hypothesis which means there is a bidirectional causality between energy consumption and economic growth [12].…”

Section: Literature Reviewmentioning

confidence: 99%

Modeling the Nexus of Renewable and Non-Renewable Energy Consumption and Economic Progress in Southeastern Europe: A Panel Data Analysis

Halilbegović,

Pekmez,

Rehman

2023

Sustainability

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As the fourth industrial revolution drives innovation and economic growth, the energy sector is increasingly recognized for its significant economic contribution. This research aims to investigate the relationship between economic growth and renewable and non-renewable energy consumption in nine southeastern European countries using panel estimation techniques and causal inference. This research employs a unique approach to modeling the energy–growth nexus, incorporating interaction terms to better understand the impact of renewable energy on real GDP growth. The findings are a valuable addendum to the current body of research on the effects of renewable energy consumption on economic growth, and the results contribute to narrowing the empirical research gap in the econometrical field of panel data estimation and endogeneity. This study uses the fully modified OLS (FMOLS) technique for heterogeneous panels to estimate coefficients, while the error correction model (ECM) is used to estimate the cointegration vector between energy variables and GDP. The non-causality test by Dumitrescu and Hurlin (2012) evaluates the causation between energy variables and economic output. Empirical findings indicate that both renewable and non-renewable energy consumption positively affect economic growth. The outcomes of this study hold significant policy ramifications in terms of prioritizing reformation and investment towards specific sectors to foster capital infusion into renewable energy and energy efficiency projects and initiatives, consequently advancing sustainable economic growth.

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The impact of financial tools in environmental degradation management: the relationship between Co2 emission and ESG funds

Tuna

Türkay

Çiftyildiz

et al. 2023

Environ Dev Sustain

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This study aims to determine whether ESG funds can be used as an effective tool for environmental sustainability. ESG funds, which first appeared in the 2000s and were exported by environmentally friendly companies, are among the most effective tools for increasing firm value and managing environmental degradation. The causality relationship between the ESG funds, one of the environmentally friendly investment instruments, and the CO 2 emission values, which are used as an environmental degradation criterion, was investigated in this study.

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The relationship between energy consumption and economıc growth in the G7 countries: the time-varying asymmetric causality analysis

Cited by 5 publications

References 48 publications

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Revisiting the pollution haven hypothesis within the context of the environmental Kuznets curve

Modeling the Nexus of Renewable and Non-Renewable Energy Consumption and Economic Progress in Southeastern Europe: A Panel Data Analysis

The impact of financial tools in environmental degradation management: the relationship between Co2 emission and ESG funds

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