أبحاث إقتصادية معاصرة
Volume 9, Numéro 1, Pages 62-79
2026-04-23

Investigating The Pollution Haven Hypothesis In Türkiye: An Ardl Approach

Authors : Aimar Djallel .

Abstract

This study examines the validity of the Pollution Haven Hypothesis (PHH) in Türkiye for the period 1990–2022. Using annual data, carbon dioxide (CO₂) emissions per capita are analysed in relation to foreign direct investment (FDI), economic growth, energy consumption, renewable energy, trade openness, and economic freedom. The Autoregressive Distributed Lag (ARDL) bounds testing approach is employed to estimate short-run and long-run relationships. Structural changes are controlled for using the Zivot–Andrews unit root test and a structural break dummy for 2003. The results reject the Pollution Haven Hypothesis, as FDI does not significantly affect CO₂ emissions. In contrast, economic growth and energy consumption significantly increase emissions, while renewable energy does not yet mitigate environmental degradation. These findings indicate that energy transition and efficiency-oriented policies are more effective than restricting foreign investment.

Keywords

Pollution Haven Hypothesis ; CO2 Emissions ; Foreign Direct Investment, ; Economic Growth ; Energy Consumption