ECONOMIC GROWTH, FINANCIAL DEVELOPMENT, ENERGY CONSUMPTION AND FOREIGN TRADE IMPACT ON THE ENVIRONMENTIAL: A CAUSALITY ANALYSIS FOR TURKISH ECONOMY (1960-2013).

Environmental pollution and its determinants have been significantly discussed in the literature. This variable is used to measure environmental pollution since the most used indicator for measuring environmental pollution is carbon dioxide emissions. Since economic growth, financial development, energy consumption and foreign trade are among the most important determinants of environmental pollution, in this study, the relations between these variables and carbon dioxide emissions are dealed with over the period of 1960-2013 in the context of Turkish economy. Stationarity analysis of the series is conducted by ADF and PP tests. The cointegration relationship between the variables is investigated through Johans-Juselius cointegration method whereas the causal linkages between the variables is examined by the Granger causality test. According to the findings obtained from the study, it is observed that all variables are stationary in their first difference. The appropriate lag length is determined as 1 by the VAR model. The results of cointegration analysis indicate that there exists a long run relationship between the variables. According to the causality analysis, there exists a Granger causality from carbon dioxide emissions to energy consumption. There also exists a Granger causality from foreign trade to carbon dioxide emissions. [ABSTRACT FROM AUTHOR]