Search

Human activities threaten the future of the ecosystem by emitting pollution to the air, water, and soil. Considering the increasing ecological footprint (EF), the study focuses on investigating the role of life expectancy and hydropower consumption by controlling also income, trade openness, and globalization on the environment under the environmental Kuznets curve (EKC) hypothesis for Turkey during 1971-2018. In this context, the study performs recently developed augmented autoregressive distributed lag (AARDL) and dynamic ARDL (DARDL) methods. The results show that (i) life expectancy increases the environmental pressure; (ii) hydropower consumption has no effect on the EF; (iii) globalization and trade openness reduce the EF; (iv) the EKC hypothesis is valid, but the estimated turning point lies between USD 19,914 and USD 20,571, which is far from the sample period in Turkey. From the overall results, it can be concluded that Turkey cannot solve environmental problems with insufficient income levels, an increasing elderly population, and ineffective use of hydropower. Hence, Turkey should rely on income much more, use hydropower much more efficiently, and benefit from the spillover effect of technological innovations related to globalization and foreign trade to significantly reduce the EF., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2023 The Authors.)

In this study, dynamic links between central bank reserves (CBR), credit default swap (CDS) spreads, and foreign exchange (FX) rates are investigated. So, Turkey, which is a negative outlier country among other peer emerging countries, is examined by considering recent developments on these indicators. In doing so, the study covers relatively high frequency (i.e., weekly) data from January 2, 2004 to November 12, 2021, performs various econometric approaches as Wavelet Coherence (WC), Quantile-on-Quantile Regression (QQR), and Granger Causality in Quantiles (GCQ) as main models, and applies Toda-Yamamoto (TY) causality and Quantile Regression (QR) for the robustness. The results show that (i) there is a time-frequency dependency between the CBR, CDS spreads, and FX rates; (ii) a bidirectional link exists between the CBR and FX rates; between the FX rates and CDS spreads; and between the CDS spreads and CBR; (iii) the link exists in most quantiles except for some lower and middle quantiles for some indicators; (iv) explanatory effect of the indicators on each other varies based on quantiles; (v) the robustness of the results are validated by the TY causality test for the WC model and by the QR approach for the QQR model. The results suggest the significance of the CBR for the FX rates, the FX rates for the CDS spreads, and the CDS spreads for the CBR., Competing Interests: The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper., (© 2023 The Authors.)