The effect of economic growth and energy consumption on CO2 emission in the context of Environmental Kuznets Curve

The aim of the study is to examine the relationship between carbon emissions and income in Turkey. For this purpose, the relationship between carbon emission, energy consumption and per capita income between 1960 and 2017 was examined within the scope of Environmental Kuznets Curve. In the study, ADF and PP unit root tests were used to determine the integration order of the variables. The results of the analysis show that the variables are not stationary in level but there is a cointegration relationship between them. Engle-Granger cointegration method was used to determine this relationship. As a result of regression analysis, it was determined that energy consumption increases carbon emission. In addition, we find evidence in favor of the inverse U-shaped relationship between carbon emissions and per capita income and this result confirm that the Environmental Kuznets Curve hypothesis is valid in Turkey. The threshold value for the relationship between income and carbon emissions was calculated as TL 15.994. In addition, Threshold Regression model is employed to examine nonlinear relation among the variables and analysis results suggest that the Environmental Kuznets curve hypothesis is not valid. Keywords: Environmental Kuznets Curve, Economic Growth, Energy Consumption