Analysis of energy consumption and environment relationship in Turkey with hidden cointegration approach

It is understood that human beings have been interacting with the environment since ancient times and that energy consumption has increased significantly with the Industrial Revolution, and that this situation has made environmental effects increasingly apparent. Increasing energy use has added a dimension that threatens human life as well as environmental problems. However, energy is of critical importance for the sustainability of life. In this study, the asymmetric relationship between energy consumption and the environment in Turkey for the period 1990-2021 was examined. In the analyses, DF-GLS and Ng-Perron unit root tests were used and it was determined that the variables were stationary in the first difference. The long-term relationship was analyzed by means of a new generation test, the hidden cointegration test. In addition, causality relationships were evaluated with the asymmetric causality test based on the hidden error correction model. The effect of energy consumption on positive components such as carbon emissions and economic growth was examined in the study, and economic growth was included as an explanatory variable in the model. The findings reveal the effects of changes in energy consumption on carbon emissions and economic growth; therefore, it is concluded that energy consumption is an asymmetric cause of these two components. This study differs from previous studies in the literature in terms of using the asymmetric analysis method and presents important findings regarding energy and environmental policies