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The Effect of Shadow Economy, Public Debt, and Energy Efficiency Measures on Ecological Quality in Türkiye

In: Shadow Economies in Turkic Republics

Author

Listed:
  • Mustafa Kızıltan

    (Hacettepe University, Faculty of Economics and Administrative Sciences, Department of Public Finance)

  • Ahmet Burçin Yereli

    (Hacettepe University, Faculty of Economics and Administrative Sciences, Department of Public Finance)

Abstract

Environmental sustainability is among the visions of Türkiye as a developing country. In this context, the present study analyzes the period of 1990–2020. We employ Fully Modified Ordinary Least Squares (FMOLS) and Canonical Co-integrating Regression (CCR) methods for long-term estimation results. The main findings of this study show that: (1) Shadow economy, rising public debt, per capita income growth, unemployment, and energy efficiency measures contribute to improvements in environmental quality. (2) Financialization and access to credit lead to environmental deterioration. (3) The Environmental Phillips Curve hypothesis is valid for Türkiye. (4) Energy efficiency policies should be sustained to enhance environmental quality, and green finance practices should be expanded.

Suggested Citation

  • Mustafa Kızıltan & Ahmet Burçin Yereli, 2026. "The Effect of Shadow Economy, Public Debt, and Energy Efficiency Measures on Ecological Quality in Türkiye," Springer Books, in: Elshan Bagirzadeh & Omer Gokcekus (ed.), Shadow Economies in Turkic Republics, chapter 6, pages 145-178, Springer.
    • Handle: RePEc:spr:sprchp:978-3-032-12872-0_6
    DOI: 10.1007/978-3-032-12872-0_6
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