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Renewables as a pathway to environmental sustainability targets in the era of trade liberalization: empirical evidence from Turkey and the Caspian countries

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Abstract

The quest for improved environmental quality through low-carbon emission has been explored in this study in the wake of the growing call for a transition to renewable energy use amidst widening trade relations between Turkey and the countries in the Caspian region including Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan. This study draws strength from the United Nations Sustainable Development Goals (UN-SDGs) and their impact by 2030. These SDGs encompass pertinent targets on responsible energy consumption (SDG-12), access to clean and affordable energy (SDG-7), and climate change action (SDG-13). Empirical evidence from the dynamic ordinary least squares (DOLS) technique corroborated by the fully modified ordinary least squares (FMOLS) technique shows that a percent rise in renewable energy consumption level significantly abates carbon emission among these countries by about 0.26% while growing globalization vis-à-vis a percent increase in openness to trade significantly hampers environmental quality via inducement of carbon emission level by 0.32%. Extended findings from the Granger causality analysis corroborate the significance of the long-run coefficients with regard to the double-edged benefits of renewable energy consumption in enhancing both environmental quality and income levels through lower carbon emission and sustainable economic growth stimulations among the countries. The study confirmed the inverted U-shape relation between income growth and environmental deterioration, thus validating the EKC hypothesis for Turkey and the Caspian countries. This suggests that both blocs are still at the scale stage of their growth trajectory, where the emphasis is focused on increasing income level relative to environmental sustainability. As such, important policy measures were provided in the concluding section of this study.

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Data Availability

The data for this present study are sourced from the World Development Indicators (https://data.worldbank.org/). The current specific data can be made available upon request, but all available and downloadable at the aforementioned database and weblink.

Notes

  1. See Figs. 2 and 3 in the Appendix for the trend in Carbon emission and renewable energy consumption in Turkey and countries in the Caspian region.

  2. The OECD is an organization established to strengthen economic corporation and development following the 14th of December 1960 Paris convention between 20 founding member countries including, Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, UK, and the USA. Turkey became a member since 2 August 1961 and has been playing active roles in the organization until date. See OECD (2008) for more information about the OECD.

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Acknowledgements

Author gratitude is extended to the prospective editor(s) and reviewers that will/have spared time to guide toward a successful publication.

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Authors and Affiliations

  1. Department of Economics, Selcuk University, Konya, Turkey

    Stephen Taiwo Onifade, Savaş Erdoğan & Mehmet Alagöz

  2. Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, Istanbul, Turkey

    Festus Victor Bekun

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  1. Stephen Taiwo Onifade
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  2. Savaş Erdoğan
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  3. Mehmet Alagöz
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  4. Festus Victor Bekun
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Contributions

The first author (Dr. Stephen Taiwo Onifade) was responsible for the conceptual construction of the study’s idea. The second author (Prof. Dr. Savaş Erdoğan) alongside the first author handled the extended introduction/literature section. The third author (Dr. Festus Victor Bekun) managed the data gathering and preliminary analysis, while Prof. Dr. Mehmet Alagöz was responsible for proofreading and manuscript editing. The author(s) read and approved the final manuscript.

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Correspondence to Festus Victor Bekun.

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Appendix

Appendix

Fig. 2
figure 2

Trend of carbon emission in Turkey and countries in the Caspian region

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Fig. 3
figure 3

Trend of renewable energy consumption in Turkey and countries in the Caspian region. RGER represents renewable energy consumption level (% of total final energy consumption)

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Onifade, S.T., Erdoğan, S., Alagöz, M. et al. Renewables as a pathway to environmental sustainability targets in the era of trade liberalization: empirical evidence from Turkey and the Caspian countries. Environ Sci Pollut Res 28, 41663–41674 (2021). https://doi.org/10.1007/s11356-021-13684-1

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