DETERMINANTS OF CARBON EMISSIONS THROUGH THE QUANTILE REGRESSION METHOD: THE CASE OF TURKEY
Kenan İLARSLAN, Münevvere YILDIZ, Tuğrul BAYAT
Afyon Kocatepe University, Bolvadin Faculty of Applied Sciences, Turkey.
E-mail: ilarslan@aku.edu.tr; munevvereyildiz@aku.edu.tr; tbayat@aku.edu.tr
ABSTRACT
The aim of this study is to determine the factors affecting the amount of carbon emission in Turkey. The amount of carbon emission is a dependent variable and inflation, foreign direct investments (FDI), number of passengers transported by air, and bank credits to the private sector are included as independent variables in the analysis covering the period 1960-2019. After determining the existence of cointegration relationship between variables, coefficients were estimated by quantile regression analysis. According to the results, low and medium quantile levels of inflation, FDI and the number of passengers transported by airline have a positive effect on carbon emissions. However, the reducing effect of bank loans given to the private sector on carbon emissions is significant at high quantile levels.
KEYWORDS: Carbon emission, bank loans, foreign direct investment, airline passenger transport, quantile regression.
JEL Classifications: Q50, R40, C22, G21