The environmental aspects of agriculture, merchandize, share, and export value-added calibrations in Turkey

Abstract

The intricacy associated with policy design for environmental sustainability has necessitated a reconsideration of the output and environmental degradation relationship. Like many economies across the globe, the sector contributions to environmental woe are likely contingent on the respective economic performance of the sectors. From this perspective, this study examines the environmental effects of the contributions of agriculture value-added, merchandize value-added, export value-added, and share value-added over the period 1991–2019. By employing a combination of econometric techniques, the result revealed that agriculture value-added and export value-added mitigate environmental hazards, while a 1% increase in total energy utilization, merchandize value-added, and share value-added induce carbon emission by about 0.6%, 0.02%, and 0.001%. Moreover, the environmental Kuznets curve (EKC) hypothesis is validated for agriculture value-added and carbon emission nexus. However, there is a significant U-shaped relationship between carbon emission and economic contributions from the merchandize valueadded, export value-added, and share value-added, thus suggesting that the EKC hypothesis is not valid. The study suggests that Turkey’s agricultural sector is possibly living to the expectation of adopting and incorporating environmental sustainability practices. On the other hand, sustainable environmental policies related to other sectors of the economy are proffered in consonance with the indicated result from the study.