AN ANALYSIS OF CO2 EMISSIONS OF TURKISH INDUSTRIES AND ENERGY SECTOR

One of the prominent environmental problems arising within the past two decades is global warming, and hence the closely associated phenomenon of climate changes. In this context, the long run relationships and causalities among the industrial, cement and steel productions; power generation; oil consumption; and finally CO2 emissions in Turkey were investigated in this study by using a vector autoregression (VAR) testing approach for the period of 1990-2010. According to the empirical results, bidirectional Granger causality was inferred between CO2 emissions and the production of cement and electricity. In light of the results of the impulse-response analysis, the CO2 emissions were mostly affected by a shock given to industrial production, followed by cement production, power generation, oil consumption and steel production, in decreasing order of impact.