Sevil Acar

Convergence of carbon dioxide emissions : a review of the literature

The objective of this paper is to review previous research on convergence of carbon dioxide emissions among countries. We discuss the key findings in this work, how the choices of model, data, statistical tests, etc. influence the results, and highlight some policy implications. The empirical research on convergence in per capita carbon dioxide emissions shows some evidence of convergence between developed (OECD) countries, while at the global level there appear to be relatively persistent gaps or divergence. These results are however sensitive to the choice of econometric approach and data set (e.g., the length of the time series). Still, the empirical basis for an egalitarian rule of equal per capita emissions in the design of global climate policy is not solid; it ignores the specific structural characteristics of countries such as climate, natural resource endowments, etc. The analysis therefore points to a need for more in-depth analyses of the structural determinants of carbon intensity (productivity) at the country level, as well as to additional research on the economic consequences of different types of equity principles (including combinations of such principles).

Nature and economic growth in Turkey: what does ecological footprint imply?

This study investigates the income–environment relationship in Turkey by examining the components of the ecological footprint indicator within the Environmental Kuznets Curve (EKC) framework. Using co-integration techniques for the 1961–2008 period, we find an inverted U-shaped, hence EKC-type, relationship only between production footprint and income. Consumption, import and export footprints are found to be monotonically increasing with income, which suggests that Turkey tends to export the negative consequences of its consumption by importing rather than producing domestically the environmentally harmful products. We also find that imported footprint is not enough to cover the biocapacity deficit in Turkey, which results in a continuous decline in domestic biocapacity.

Convergence of per capita carbon dioxide emissions : implications and meta-analysis

ABSTRACT There is a rich empirical literature testing whether per capita carbon dioxide emissions tend to converge over time and across countries. This article provides a meta-analysis of the results from this research, and discusses how carbon emissions convergence may be understood in, for instance, the presence of international knowledge spillovers and policy convergence. The results display evidence of either divergence or persistent gaps at the global level, but convergence of per capita carbon dioxide emissions between richer industrialized countries. However, the results appear sensitive to the choice of data sample and choice of convergence concept, e.g. stochastic convergence versus β-convergence. Moreover, peer-reviewed studies have a higher likelihood of reporting convergence in carbon dioxide emissions compared to non-refereed work. POLICY RELEVANCE The empirical basis for an egalitarian rule of equal emissions per capita in the design of global climate agreements is not solid; this supports the need to move beyond single allocation rules, and increase knowledge about the impacts of combined scenarios. However, even in the context of the 2015 Paris Agreement with its emphasis on voluntary contributions and ‘national circumstances’, different equity-based principles could serve as useful points of reference for how the remaining carbon budget should be allocated.

Convergence of CO2 emissions and economic growth in the OECD countries: Did the type of fuel matter?

ABSTRACT This study analyzes convergence in CO2 emissions in the Organization for Economic Cooperation and Development (OECD) countries with respect to the source of emissions (oil vs. coal). The investigated period 1973–2010 is divided into two subperiods, 1973–1991 and 1992–2010. The first period covers the Organization of the Petroleum Exporting Countries (OPEC) oil price shocks, where the OECD oil policy was to a high extent governed by energy security concerns and Cold War strategic considerations. The second period corresponds to the end of the Cold War and the rise of climate policy in several OECD countries. Due to such contextual differences, oil and coal behave differently in the two subperiods. The generally stronger convergence with respect to oil-related emissions until 1991 conditional on gross domestic product per capita is compatible with a situation where the rising oil prices led to a strong transformation in the countries of interest. Besides, we evidence decoupling of economic growth from oil-related emissions in the post-Cold War period.

Questioning Turkey’s “Miracle” Growth From a Sustainability Perspective

Over the last two decades, Turkey has enjoyed high rates of economic growth. This study uses “the adjusted net saving” approach to explore to what extent Turkey achieved this growth at the expense of rapid natural resource use and increased environmental pollution in violation of basic sustainability criteria. We examine the components of adjusted net savings (i.e., changes in physical, natural, and human capital) for the period 1970 to 2011 and consider the sectoral shifts resulting from capital investments and accompanying state policies that are driving industrialization in Turkey. We find that the so-called miracle growth in the 2000s has come at the expense of massive natural capital utilization. Although gross fixed capital formation has continued to grow, it has been accompanied by high depreciation, and thus, in the post-2000 period, the net accumulation of physical capital has followed a declining trend.

Theoretical and Empirical Background

This chapter outlines the theoretical background of how natural resources can be influential in enhancing economic prosperity with a focus on early theories of staples and export-base models as well as the more recent resource curse hypothesis. Factors leading to the resource curse that have been frequently cited in the literature are discussed. Different types of resources in relation to the ways they can generate desirable or undesirable economic outcomes are outlined with specific attention to oil. Next, an institutional approach to the resource curse hypothesis is presented in brief, where the interrelations with natural resource abundance and economic development are monitored. Examples from studies that deal with the resource curse problem using institutional tools are provided.

Natural Resources and Sustainability

This chapter is devoted to the analysis of sustainability measured by genuine savings in the post-1970 period. First, a theoretical model is presented where the definition and content of the welfare indicator (genuine saving) is extended by the inclusion of institutional capital as a productive asset among other assets. Second, this background model is taken as a benchmark to explore the impacts of different types of resources and other factors on genuine savings. Third, using petroleum production per capita as the resource indicator, only oil-producing countries are investigated through fixed effects panel data estimations for the period 1995–2007. This is followed by the analysis of 21 Organization for Economic Co-operation and Development (OECD) countries in the same period. Finally, the results are summarized and discussed.

Natural Resources and Human Development

This chapter is committed to unfolding the relationship between resource dependence and human development. The historical and current situation of countries and inequalities among regions are unveiled through an overview of the patterns of human development. A recent dataset combining the original Human Development Index components with a new formula generated by Gidwitz et al. (Understanding Performance in Human Development: A Cross-National Study. UNDP Human Development Research Paper 2010/42, 2010) is utilized. The analysis demonstrates that dependence on agricultural raw materials is associated with significant deterioration in human development, while the impact of extractive resource exports, such as energy and minerals, remains limited depending on the model specifications. Type of political regime, quality of governance, and legal origin are among the transmission channels.

Two-Country Comparison: Norway versus Sweden

This chapter analyzes the development path of Norway before and after oil compared to that of Sweden. First, the components of wealth and welfare are displayed in each country. Second, a difference-in-differences approach is implemented to answer how Norway would develop without oil (in comparison to Sweden). Sweden and Norway had been following almost identical paths until Norway found oil at the beginning of the 1970s. Despite experiencing the symptoms of a resource curse in those years, Norway succeeded in managing oil revenues carefully afterwards. It enhanced its industrial basis, raised productivity, and invested highly in human capital. Acar demonstrates that the importance attached to technological improvements and existence of reliable institutions helped Norway utilize its oil in a way that achieved economic prosperity.

Inequality Impacts of Oil Dependence in the MENA

One of the most dramatic dimensions of the current economic problems is the level of unequal income distribution across the globe. According to a recent UNCTAD Trade and Development Report (2012), rising income inequality has become “a feature of the past three decades”. The problem of inequality surfaces not only in underdeveloped countries, but also in the developed world. In most developed countries, Gini coefficients increased between 1980 and 2000 whereas in all developing regions, there was a general rise in inequality over the same period, with an increase in the concentration of wealth in the higher-income sections of the population (UNCTAD, 2012).