COINTEGRATION BETWEEN CARBON EMISSION, ECONOMIC GROWTH, AND ENERGY CONSUMPTION IN TWO NEIGHBOR COUNTRIES: A STUDY ON GEORGIA AND TURKEY

In today’s world, carbon emissions, energy consumption, and economic growth are an issue of interest for all countries that want to continue growing by establishing a balance between energy and carbon emissions. This brief research investigates the relationship between carbon emissions, energy consumption and economic growth using data between the years 1997-2014 period for Turkish and Georgian economies. Panel data cointegration tests are carried to analyze the relationship between variables. The overall finding results indicate that there is a significant relationship between the variables for the Georgian and Turkish economies. Moreover, the tests results are consistent with the general assumption of the Environmental Kuznets Curve hypothesis