Assymetric causality analysis of growth-emissions nexus: Evidence from Turkey

The aim of this thesis is investigate the relationship between carbon emission (per capita and economic growth (GDP Per capita) over the period of 1960-2018 in Turkey. To do so, we employ a short-run asymmetric causality test developed by Hatemi-J (2012) and Granger Yoon (2002) for a hidden cointegration relationships. As a result of the analysis, while in the long run, we found that that there is a long-run equilibrium relationship between the positive components of the variables and the positive component of carbon emissions and the negative component of economic growth. There is an asymmetric causality relationship from the negative components of carbon emissions to the negative components of economic growth in the short run. We expect that our result will contribute to the existing literature and that it is important to use the results for better environmental policies in Turkey. This is expected to be useful in the following way: to get a better understanding of the dynamics between the variables; to reveal useful information between the components; and to reduce the carbon emissions.