62 research outputs found
Environmental Kuznets Curve for the Informal Sector of Turkey (1950-2009)
In this study we investigate the empirical relationship between the size of
the informal sector (as percentage of official GDP), carbon dioxide and
sulfur dioxide emissions in Turkey by using annual data from 1950 to 2009 and
conducting a time-series analysis using cointegration techniques. This
analysis is crucial as pollution emissions may lead to unfavorable weather
conditions and potentially cause environmental impacts that may adversely
affect the global economy. The empirical analysis shows evidence towards the
existence of an inverted-U relationship between relative informal sector size
and environmental pollution indicators in the long-run. That is small and
large sizes of the shadow economy are associated with little environmental
pollution and medium levels of the size of the shadow economy are associated
with higher levels of environmental pollution. Moreover, using multivariate
cointegration techniques, we suggest and test an economic mechanism to
account for this observation. This also helps us to prescribe various policy
recommendations regarding pollution and energy use
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