Implication of energy expansion via the interaction of coal, industrialization, and agriculture towards climate goal: dual sustainability analysis

Abstract

This current study seeks to investigate the policy implication of Turkey’s recent energy policies on its sustainable development. This study uses Turkey’s country-specifc data and series of 1974 to 2018 for efective investigation and justifcation of the fndings of this study with emphasis on both short-run and long-run implications. Three models were ftted to achieve study objectives to accommodate both environmental sustainability and economic impacts. Ecological footprint was considered better measure and used as proxy for the environment related model. In summary, with environment models, the selected series (per capita GDP, industrialization, agriculture, coal as a single energy use, and mixed energy use) except per capita GDP2 were found positively and signifcantly related to ecological footprint in both short run and long run which translates to poor performance of Turkey’s environment. Also, using economic growth model, the selected series (industrialization, energy use, and agriculture) were all confrmed positively and signifcantly related to the economic growth (per capita GDP). Additionally, environmental Kuznets curve (EKC) was established for Turkey’s environment and economic performance. Furthermore, using Granger causality as robust check to these fndings, a nexus was found among the series confrming the validity of the cointegration (short- and long-run policies) estimations and results. In congruence with literature and hypotheses, the results from cointegration estimation shows that the twin polices may be good to the economic performance but will spark of adverse efect on environment.