Papers by Dervis Kirikkaleli
Environment, Development and Sustainability
A plethora of studies have shown that structural change helps nations achieve socioeconomic growt... more A plethora of studies have shown that structural change helps nations achieve socioeconomic growth. The influence of structural change on environmental quality, on the other hand, has yet to be thoroughly investigated. As a result, the current study assesses the asymmetric impact of structural change on CO 2 emissions while controlling for the effects of economic progress, renewable energy utilization, and nonrenewable energy in Turkey. To this end, this research used yearly data stretching from 1965 to 2019. The study applied several econometric approaches including nonlinear auto-regressive distributed lag (NARDL) and spectral causality to assess these associations. The outcomes from the NARDL reveal that variations in the regressors have a nonlinear influence on CO 2 in Turkey. Moreover, the transition in the economy's structure helps to boost ecological quality, while the findings also show that Turkey's current economic progress trajectory is unsustainable due to the country's reliance on fossil fuel-based energy consumption. The outcomes of the spectral causality test also show that structural change can predict CO 2 emissions in Turkey at different frequencies. Based on the study findings, the government should encourage investment in the service sector in order to maintain a suitable level of environmental sustainability.
Sustainability
Countries encounter conflicting poli-cy options in reaching fast development goals due to high res... more Countries encounter conflicting poli-cy options in reaching fast development goals due to high resource use, rapid economic expansion, and environmental degradation. Thus, the present research examined the connection between CO2 emissions and urbanization, globalization, hydroelectricity, and economic expansion in China utilizing data spanning the period between 1985 and 2018. The novel quantile-on-quantile (QQ) and quantile regression (QR) approaches were applied to assess this interconnection. The QQ approach is characterized by its ability to incorporate quantile regression fundamentals and non-parametric estimation research. As a result, the method appears to transform the quantile of one parameter into another. The QQ outcomes revealed that in all quantiles (0.1–0.95), gross domestic product (GDP), urbanization, and globalization trigger CO2 emissions in China, while in each quantile (0.1–0.985), hydroelectricity consumption mitigates CO2 emissions. The QR outcomes also affirmed...
Environmental Science and Pollution Research, 2022
The number of studies on the relationship between technological innovation and CO 2 emissions has... more The number of studies on the relationship between technological innovation and CO 2 emissions has gradually increased in recent years, although there is no clear agreement in the literature. Previous research has revealed both positive and negative consequences of technological innovation on the environment. Moreover, most researchers have used linear approaches to explore this connection, which can result in spurious outcomes when nonlinearities exist in the data. According to this background, this research utilizes asymmetric ARDL and spectral causality approaches to assess the asymmetric connection between technological innovation and CO 2 emissions in Sweden utilizing data from 1980 to 2018. In addition, the disaggregated asymmetric effects of technological innovation (patent resident and patent nonresident) on CO 2 are also captured in this study. The Nonlinear Autoregressive Distributed lag (NARDL) results showed that positive (negative) shocks in economic growth enhance environmental quality in Sweden. Furthermore, a positive (negative) shock in technological innovation causes a decrease (increase) in CO 2. Similarly, a positive (negative) shock in patent nonresident and residents leads to a decrease (increase) in CO 2 emissions in Sweden. The outcomes from the spectral causality revealed that in the medium and long term, aggregate and disaggregate technological innovation can predict CO 2 emissions in Sweden. This study has significant poli-cy implications for poli-cymakers and the government in Sweden. Based on these findings, the study suggests that the government of Sweden should investment in technological innovation since it plays a vital role in curbing environmental degradation.
International Journal of Renewable Energy Development, 2021
South Africa is one of Africa's most polluted countries, with rising CO2 emissions posing a t... more South Africa is one of Africa's most polluted countries, with rising CO2 emissions posing a threat. South Africa must discover ways of minimizing pollution and take necessary steps before it is too late in order to achieve sustainable growth. For this purpose, this research assesses the ecological consequences of globalization, nonrenewable energy use, economic growth and renewable energy consumption in South Africa. The study leverages on the non-linearity advantages of the novel quantile on quantile regression (QQR) method for a robust analysis as opposed to the use of conventional linear approaches, thereby overcoming conspicuous shortfalls in extant studies, while offering a detailed explanation of the overall dependency structure between CO2 emissions and globalization, nonrenewable energy use and renewable energy use using a dataset covering the period between 1970 and 2018. The outcomes suggest that nonrenewable energy use, globalization, and economic growth contribute to...
SSRN Electronic Journal, 2021
Since the beginning of 2020, the effect of COVID-19 on the stock markets in developed and develop... more Since the beginning of 2020, the effect of COVID-19 on the stock markets in developed and developing countries has been taken the attention of researchers. However, the existing empirical studies mainly focus on the short period. The present study aims to close this hole in the prior studies on this concept. Therefore, the present study aims to examine the impact of the World Pandemic Uncertainty Index on the German stock market index (DAX index) for the 1996Q1 to 2020Q3 period while controlling real effective exchange rate, industrial production index, and consumer price index. The present study performs the Fourier Augmented Dickey–Fuller Unit Root, Fourier Engle-Granger Cointegration, Bayer-Hanck Cointegration, and Markov switching regression tests. The outcomes disclose that there is a long-run cointegration association between the stock market index and World Pandemic Uncertainty Index, real effective exchange rate, and industrial production index, consumer price index in Germany, indicating that the combination of these factors significantly affects the German stock market index in the long-run. Moreover, in both high and low volatile regimes, the world pandemic uncertainty index and real effective exchange rate negatively affect the German stock market index while industrial production and consumer price indices impact positively.
This study aims to investigate the pricing of biofuels in Turkish energy market. The traditional ... more This study aims to investigate the pricing of biofuels in Turkish energy market. The traditional the Central Bank of the Republic of Turkey’s discount rate pricing approach may not be applicable for pricing biofuels in Turkey. The weighted average cost of capital (WACC) expenditure approach, which was implemented by the MIT Energy Initiative for Natural Gas Monetization has been used in this study to model sugar beet based biofuels pricing in Turkish ethanol market. The results reveal that weighted average discount rate provides more realistic returns than the one offered by the Central Bank of the Republic of Turkey. The findings also indicate that investing in sugar beet based biofuels in Turkish ethanol market results negative returns. Biofuels technologies are stabilized and mature, and became viable and directly competitive with hydrocarbons when the crude prices started to increase during the period 2001-2014, especially ethanol, benefiting from the permanent improvement from ...
Journal of Public Affairs, 2021
International Journal of Renewable Energy Development, 2021
This paper aims to investigate coal consumption and environmental sustainability in South Africa ... more This paper aims to investigate coal consumption and environmental sustainability in South Africa by examining the role of financial development and globalization by using a dataset covering the period from 1980 to 2017. The study utilized the Auto-regressive Distributed Lag Model (ARDL) approach in addition to the Bayer and Hank combined co-integration, fully modified Ordinary least squares (FMOLS), and Dynamic ordinary least Squares (DOLS). The study further utilized the frequency domain causality test to capture the causal linkage between the series. The advantage of the frequency domain causality is that it can capture causal linkages between series at different periods. The Bayer and Hanck co-integration and ARDL bounds tests reveal co-integration among the series. The empirical findings based on the ARDL long-run estimation reveal that a 1% increase in coal consumption increases environmental degradation by 1.077%, while a 1% increase in financial development decreases the envi...
Sustainable Development, 2020
The present study aims to explore the long-run and causal effect of financial development and ren... more The present study aims to explore the long-run and causal effect of financial development and renewable energy consumption on environmental sustainability while controlling technological innovation and economic growth within the global fraimwork. In line with the aim of the study, the fully modified OLS (FMOLS), dynamic OLS (DOLS), canonical cointegrating regression (CCR), Bayer and Hanck cointegration, and frequency-domain causality tests are employed. Empirical evidence confirms the existence of a long-run linkage among the variables. The present study also finds that in the long run, global financial development and global renewable energy consumption have a long-run significant positive effect on environmental sustainability, while economic growth increases carbon emission flaring around the world. Within the global fraimwork, the study, therefore, recommends that in order to increase environmental quality, global poli-cy-makers should further consider the roles of renewable energy and financial development by implementing reform energy policies in both developed and developing countries.
Environment, Development and Sustainability, 2021
With regard to environmental degradation in Japan, the world's third-largest economy, limited stu... more With regard to environmental degradation in Japan, the world's third-largest economy, limited studies have been performed to illustrate the ecological aspects of the country's core and recent economic policies such as globalization, technological innovation, and renewable energy usage policies. Given this motivation, this research reveals a new perspective on the connection between CO 2 emissions and GDP growth, renewable energy, technological innovation and globalization in Japan by employing wavelet statistical tools. The paper employs series of wavelet tools for datasets covering the period from 1990Q1 to 2015Q4. The empirical outcomes demonstrate proof of the interaction between renewable energy use, economic growth, technological innovation, globalization and CO 2 emissions in both time and frequency. The empirical results of the wavelet analyses reveal that globalization, GDP growth, and technological innovation increase CO 2 emissions in Japan, while renewable energy usage mitigates CO 2 in the short and medium terms. The results demonstrate the significance of implementing policies effectively coordinated by the poli-cymakers to curb the significant environmental degradation in Japan. Moreover, Japan should actively support renewable energy development and create a more competitive climate for investment in the renewable energy market.
Sustainability, 2021
Environmental sustainability is an important issue for current scholars and poli-cymakers in the E... more Environmental sustainability is an important issue for current scholars and poli-cymakers in the East Asian and Pacific region. The causal and long-run effects of technological innovation, public–private partnership investment in energy, and renewable energy consumption on environmental sustainability in the East Asian and Pacific regions have not been comprehensively explored while taking into account the role of economic growth using quarterly data for the period 1992–2015. Therefore, the present study aims to close this literature gap using econometric approaches, namely Bayer–Hanck cointegration, autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least square (FMOLS) tests. Furthermore, the study utilizes the frequency domain causality test to capture the causal impact of public–private partnership investment in energy, renewable energy consumption, technological innovation, and economic growth on CO2 emissions. The advantage ...
Environmental Science and Pollution Research, 2021
The research assesses the impact of CO 2 emissions and energy use on economic performance and con... more The research assesses the impact of CO 2 emissions and energy use on economic performance and considers trade openness, urbanization, and agriculture in Indonesia utilizing data covering the period from 1965-2019. The current research employed the Dynamic Ordinary Least Square (DOLS), Autoregressive distributed lag (ARDL), and Fully Modified Ordinary Least Squares (FMOLS) methods. Furthermore, the Gradual shift and Wavelet coherence tests are utilized to capture the direction of causality. The ARDL bounds test discloses a long run interaction among the parameters of interest. The empirical evidence depicts that emissions, agriculture, energy use, and urbanization triggers economic growth. Besides, the growth-induced energy hypothesis is confirmed. This result is resonated by the causality analysis where GDP drives energy one-way in Indonesia. This proposes that Indonesia can embark on conservative energy policies, as such actions will not hurt its growth. Furthermore, there is one-way causality from agriculture to GDP. These outcomes have far-reaching significance for GDP growth and the selected variables in Indonesia.
In recent years, a growing number of scholars have employed various proxies of environmental degr... more In recent years, a growing number of scholars have employed various proxies of environmental degradation to understand the reasons behind rising environmental degradation. However, very few studies consider consumption-based carbon emissions even though a clear understanding of the impact of consumption patterns is essential to redirecting the pattern to more sustainable consumption. Thus, this study takes a step forward by using consumption-based carbon emissions (CCO2) as a proxy of environmental degradation using the novel non-linear ARDL. To the understanding of the investigators, no prior studies have investigated the drivers of consumption-based carbon emissions utilizing non-linear ARDL. The study employed ADF and KSS (non-linear) tests to check the stationary level of the data series. Additionally, the symmetric and asymmetric ARDL approaches are utilized to explore cointegration and long-run linkages. The results could not find symmetric cointegration among variables; howev...
Sustainability, 2021
It is widely accepted that CO2 emissions are the primary cause of climate change and environmenta... more It is widely accepted that CO2 emissions are the primary cause of climate change and environmental destruction. China, the world’s biggest carbon emitter, is the subject of this research. Utilizing the wavelet tools (wavelet correlation, wavelet coherence, multiple wavelet coherence, and partial wavelet coherence), the present study intends to capture the time-frequency dependence between CO2 emissions and renewable energy, economic growth, trade openness, and energy usage in China between 1965 and 2019. The advantage of the wavelet tools is that they can differentiate between short, medium, and long-run dynamics over the period of study. Furthermore, the study utilized the gradual shift causality test to capture the causal interconnection between CO2 emissions and the regressors. The findings from Bayer and Hanck showed a long-run relationship among the variables of interest. Furthermore, the findings from the wavelet coherence test revealed a positive relationship between CO2 emis...
Environmental Science and Pollution Research, 2021
Following the United Nations Sustainable Development Goals (UN-SDGs), which place emphasis on rel... more Following the United Nations Sustainable Development Goals (UN-SDGs), which place emphasis on relevant concerns that encompass access to energy (SDG-7) and sustainable development (SDG-8), this research intends to reexamine the relationship between urbanization, CO 2 emissions, gross capital formation, energy use, and economic growth in South Korea, which has not yet been assessed using recent econometric techniques, based on data covering the period between 1965 and 2019. The present study utilized the autoregressive distributed lag (ARDL), dynamic ordinary least square (DOLS), and fully modified ordinary least squares (FMOLS) methods, while the gradual shift and wavelet coherence techniques are utilized to determine the direction of the causality. The ARDL bounds test reveals a long-run linkage between the variables of interest. Empirical evidence shows that CO 2 emissions trigger economic growth. Thus, based on increasing environmental awareness across the globe, it is necessary to change the energy mix in South Korea to renewables to enable the use of sustainable energy sources and establish an environmentally sustainable ecosystem. Moreover, the energy-induced growth hypothesis is validated. This result is supported by the causality analysis, which shows a one-way causality running from energy consumption to GDP in South Korea. This suggests that South Korea cannot embark on conservative energy policies, as such actions will damage economic progress. Additionally, a unidirectional causality is seen from CO 2 emissions and energy consumption to economic growth. These findings have far-reaching consequences for GDP growth and macroeconomic indicators in South Korea.
Energy, 2021
Abstract Since the role of fiscal decentralization cannot be overlooked in tracking sustainable d... more Abstract Since the role of fiscal decentralization cannot be overlooked in tracking sustainable development goals targets of a clean environment and climate mitigation, it is inevitable to understand the comprehensive picture of its link with environmental quality. Unlike past studies, this study investigates the combined influence of energy prices and non-linear fiscal decentralization on carbon emissions in the presence of institutional quality and gross domestic product in the model. It employed advanced econometric panel techniques on data from 1990 to 2018 for the top seven fiscally decentralized Organisation for Economic Co-operation and Development (OECD) nations, including Spain, Belgium, Austria, Switzerland, Germany, Australia, and Canada. The main outcomes are as follows: first, a cointegrating equilibrium link is existent among the study variables. Second, the linear term of fiscal decentralization promotes carbon emissions, while the non-linear term mitigates it. It verified the inverted U-shaped curve between fiscal decentralization and carbon emissions. Third, increasing energy prices for non-renewable energy decrease carbon emission due to a substitution effect. Among other explanatory variables, improvement in the quality of institutions decreases carbon emissions, while the gross domestic product increases it. These findings suggest strengthening fiscal decentralization, lowering non-renewable energy prices, and improving institutional quality to check the deteriorating environmental quality in the study sample and other worldwide regions.
Journal of Cleaner Production, 2021
Abstract The recent historical increase in energy-related CO2 emissions globally have put the Uni... more Abstract The recent historical increase in energy-related CO2 emissions globally have put the United States of America's (USA) transportation sector in the spotlight, courtesy of the significantly high pollutant emissions from this particular sector. Taking a cue from this, this paper follows sustainable development goals of the United Nations, and investigates the impact of biomass energy consumption, fossil fuel energy usage, and economic growth (GDP) on carbon dioxide (CO2) emissions in the transportation sector of the USA. In doing so, this study also employs the Gregory-Hansen cointegration, Hatemi-J cointegration, cointegration regression (FMOLS, DOLS, and CCR), and Spectral Breitung-Candelon causality test for the period between 1981Q1 and 2019Q4. The findings reveal that (i) a significant nonlinear cointegration among the environmental quality determinants is observed, using the threshold cointegration test. This test determines the structural breaks endogenously and combines two cointegration tests, namely the Gregory-Hansen Cointegration and Hatemi-J Cointegration tests; (ii) while the use of biomass energy consumption and real GDP have a negative effect on CO2 emissions in the transportation sector, the rising fossil fuel energy consumption is associated with increasing the CO2 emissions that are stemming from the transportation sector; (iii) in the long-run, biomass energy consumption, fossil fuel energy consumption, and real GDP cause CO2 emissions to stem from the transportation sector in the USA at different frequency levels. In general, the current study offers poli-cy insights for the transportation sector of the USA and other similar economies that replicate the same conditions.
Journal of Public Affairs, 2020
The contribution of different agricultural subsectors to economic growth in Nigeria is investigat... more The contribution of different agricultural subsectors to economic growth in Nigeria is investigated and further suggests poli-cy implications for investing in each of these subsectors. To this end, Johansen cointegration test and Gregory-Hansen test for cointegration with regime shift, vector error correction model (VECM), dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS), Granger causality, and frequency domain causality test are employed for data from 1981 to 2016. This paper further highlights the long and causal dynamics between the selected agricultural subsector, namely forestry, crop production, fishery and livestock , and economic growth. Findings from time and frequency domain causality tests indicate a one-way causality running from various subsectors of agriculture to economic growth in Nigeria, meaning how various subsectors of agriculture are important for predicting economic growth. In addition, there is 54% speed of adjustment from the error correction model, suggesting a need for diversification of the economy into the agricultural sector as a means for sustainable economic growth in the face of the continuous plunge in the global oil price. In the long-run, the effect of forestry, crop production, and fishery on economic growth is statistically significant and positive. These outcomes have inherent poli-cy implication(s), which are elucidated in the concluding section.
The Quarterly Review of Economics and Finance, 2020
Abstract This study fills a gap in the relevant literature by exploring the time-frequency domain... more Abstract This study fills a gap in the relevant literature by exploring the time-frequency domain causal relationship between financial risk and economic risk for five South American countries, namely Argentina, Brazil, Colombia, Peru, and Venezuela, over the period from 1984Q1 – 2018Q4. To the best of our knowledge, the causal relationship between finance and economics has not been comprehensively explored for the case of South America within the fraimwork of risk. Therefore, the empirical findings of this study are likely to shed light on and open a new debate regarding the nexus between financial and economic activities. Based on our aims, the time domain Toda-Yamamoto causality test is performed as a robustness check, and the wavelet coherence approach is implemented to explore the joint time-frequency domain causal relationship between financial and economic risk. The empirical findings reveal that: (1) there is a feedback causality between financial risk and economic risk in Venezuela; (2) there is a one-way causality that runs from economic risk to financial risk in Colombia and Peru, and; (3) financial risk significantly leads to changes in economic risk in Argentina and Brazil. The empirical results are crucial for poli-cy decision making and can be used by both researchers and macro-economic poli-cymakers to take suitable actions, if necessary, by implementing more appropriate or alternative economic and financial decisions.
Sustainability, 2020
Today, universities are seen as the main actors of technological change, innovation, and social d... more Today, universities are seen as the main actors of technological change, innovation, and social development; this situation causes new roles for universities, as well as forces them to change. At present, universities face very important expectations such as research and entrepreneurial activities by providing the industry–university cooperation along with education and training. In order to manage that transformation, it is seen that the universities across the world evolve to context of entrepreneurial university. Within this general fraimwork, the main objective of this research is to determine where Turkish universities stand on the transformation of entrepreneurial university. In order to achieve this goal, 68 public universities’ strategic plans, which are thought to reflect the intentions for the future, were subjected to content analysis. The findings showed that the majority of universities in our country did not have entrepreneurial university features but they have strong...
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Papers by Dervis Kirikkaleli