COINTEGRATION BETWEEN CARBON EMISSION, ECONOMIC GROWTH, AND ENERGY CONSUMPTION: A COMPARATIVE STUDY ON GEORGIA AND TURKEY

Abstract

In today’s world, carbon emissions, energy consumption, and economic growth are an issue of interest for all countries that want to continue growing by establishing a balance between energy and carbon emissions. This brief research investigates the relationship between carbon emissions, energy consumption and economic growth using data between the years 1997-2014 period for Turkish and Georgian economies. Panel data cointegration tests are carried to analyze the relationship between variables. The overall finding results indicate that there is a significant relationship between the variables for the Georgian and Turkish economies. Moreover, the tests results are consistent with the general assumption of the Environmental Kuznets Curve hypothesis.