The relationship between income and environment in Turkey: Is there an environmental Kuznets curve?

In this study, we investigate the relationship between income and environmental quality for Turkey at two levels. First, the relationship between the CO2 emissions and per capita income is examined by the help of a time series model using cointegration techniques. In the second stage, the relationship between income and air pollution is investigated by using PM10 and SO2 measurements in Turkish provinces. In this part of the study panel data estimation techniques are utilized. The time series model covers 1968–2003, and the panel data model covers 1992–2001 including observations from 58 provinces. A monotonically increasing relationship between CO2 and income is found in the long-run according to time series analysis. On the other hand, panel data analysis indicates an N-shape relationship for SO2 and PM10 emissions. Therefore, the results of our time series and panel data analyses do not support the Environmental Kuznets Curve hypothesis, which assumes an inverted U-shaped relationship between environmental degradation and income.