AGRICULTURE, TAXES, AND FINANCE EFFECTS ON TÜRKİYE’S ENVIRONMENT: A FOURIER ANALYSIS
AGRICULTURE, TAXES, AND FINANCE EFFECTS ON TÜRKİYE’S ENVIRONMENT: A FOURIER ANALYSIS

Summary/Abstract: This study explores the impact of value-added agriculture, environmental taxes, and financial development on environmental quality in the Turkish economy during the period 1994-2022. Additionally, the agricultural area, which can also affect environmental quality, is added as a control variable in the research model. Longterm relationships are examined using traditional Shin cointegration and Fourier Shin cointegration methods, and long-term coefficients are examined through the extended least squares method with Fourier functions. Dynamic Least Squares method extended with Fourier functions is applied as a robustness test, followed by the Fourier Bootstrap TodaYamamoto causality analysis. The findings indicate that value-added agriculture, environmental taxes, and increases in the agricultural area enhance environmental quality. Developments in the financial structure, on the other hand, have a detrimental effect on environmental quality. Short-term causality test findings indicate that there is a bidirectional causal association between value-added agriculture, environmental taxes, agricultural area, and environmental quality. However, there is a unidirectional causality from financial development to environmental quality.

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