Impact of Geopolitical Risk and Economic Globalization on Turkey’s Environmental Sustainability: Novel Quantile-on-quantile KRLS Method
Impact of Geopolitical Risk and Economic Globalization on Turkey’s Environmental Sustainability: Novel Quantile-on-quantile KRLS Method

Summary/Abstract: This study investigates the impact of economic globalization, geopolitical risk and natural resources on carbon emissions (CO2) in Turkey, while controlling for economic development and renewable energy. The study uses annual data from 1970 to 2019 and employs a quantile-on-quantile-based regularized least squares (QQKRLS) approach. The findings confirm a weak positive association between economic globalization and CO2 emissions at low and high quantiles, while this association becomes strong at quantiles from 0.40 to 0.65 of both variables. The study also confirms an overall positive association between geopolitical risk and CO2 emissions; however, this correlation becomes stronger at quantiles from 0.40 to 0.80 for both variables. In addition, the study also finds an overall inverse relationship between natural resource rents and CO2 emissions, except for extremely low quantiles of both variables, where the correlation becomes positive. To strengthen the reliability of our results, the study utilizes a non-parametric bivariate quantile-on-quantile regression (QQR) method for a robustness check. Based on the findings, it is recommended that policymakers encourage green trade practices and promote climate change action initiatives by starting joint clean projects to make this world cleaner for current and future generations.

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