Energy prices and supply security dominated headlines in 2022, prompting government initiatives to curb price hikes. A robust and resilient policy is needed to mitigate energy vulnerabilities. Despite existing literature, empirical research remains limited. This study examines the effects of energy productivity (EPRO) and renewable energy consumption (REC) on environmental degradation (CO2 emissions) in Turkey from 1990 Q1 to 2019 Q4, using GDP and FDI as control variables and applying structural break tests and nonlinear ARDL methods. Results indicate long-run cointegration among GDP, FDI, REC, EPRO, and CO2 emissions. Specifically, a 1% increase in FDI, REC, and EPRO results in reductions of 0.0149%, 0.4250%, and 0.8482% in CO2 emissions, respectively. Conversely, both positive and negative GDP shocks lead to increases in CO2 emissions. Frequency-domain causality tests corroborate the nonlinear ARDL findings. The results indicate that FDI, REC, and EPRO can improve Turkey's energy efficiency and inform a policy platform to advance green living and achieve SDG7 and SDG13.
Athari et al. (Thu,) studied this question.