THE EFFECT OF ENVIRONMENTAL QUALITY AND ENVIRONMENTAL REGULATIONS ON COMPETITIVENESS

Figen Tombak; Hayriye Atik

Article Details

THE EFFECT OF ENVIRONMENTAL QUALITY AND ENVIRONMENTAL REGULATIONS ON COMPETITIVENESS

Authors:

Figen Tombak | Hayriye Atik

Publisher:

Erciyes University

Main Topics:

Panel Veri Analizi | Çevre Ekonomisi

Journal:

Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Issue 68, pp.49-56

Document Type:

Article

Publication Date:

8/2024

Document Language:

Turkish

Document ID (Org No.):

2001325313

pISSN:

1301-3688

Keywords:

Abstract:

 Recently, countries with pollution-intensive companies have been excluded from foreign trade and cannot even sell their products to their domestic markets. Therefore, it becomes an inherent necessity for them to reduce the negative environmental externalities they create. In order to internalize negative externalities, they have to develop environmental regulations. Thus, companies face the problem of imposing additional costs. Companies that fear that their competitiveness will decrease do not want to bear additional costs with environmental regulations. In todays world, where having a competitive economy is important, the impact of environmental regulations on competitiveness is gaining importance. In this context, the main goal of the study is to investigate the impact of environmental regulations on competitiveness. Panel-difference GMM, a dynamic panel data method, was used in the empirical analysis of the study. Due to limited access to data, the study covers the years 1995-2012. In the study, total factor productivity was used to represent competitiveness. According to the findings; It has been revealed that the increase in environmental policies is negatively related to total factor productivity. Therefore, the Strong Porter Hypothesis could not be confirmed. Thus, it has been determined that the increase in environmental regulation stringencies will negatively affect the economic growth of countries by weakening their competitiveness. Apart from this, it has been determined that the share of renewable energy consumption in total energy consumption is negatively related to total factor productivity. Thus, it is revealed that environmental quality reduces competitiveness.

 Recently, countries with pollution-intensive companies have been excluded from foreign trade and cannot even sell their products to their domestic markets. Therefore, it becomes an inherent necessity for them to reduce the negative environmental externalities they create. In order to internalize negative externalities, they have to develop environmental regulations. Thus, companies face the problem of imposing additional costs. Companies that fear that their competitiveness will decrease do not want to bear additional costs with environmental regulations. In todays world, where having a competitive economy is important, the impact of environmental regulations on competitiveness is gaining importance. In this context, the main goal of the study is to investigate the impact of environmental regulations on competitiveness. Panel-difference GMM, a dynamic panel data method, was used in the empirical analysis of the study. Due to limited access to data, the study covers the years 1995-2012. In the study, total factor productivity was used to represent competitiveness. According to the findings; It has been revealed that the increase in environmental policies is negatively related to total factor productivity. Therefore, the Strong Porter Hypothesis could not be confirmed. Thus, it has been determined that the increase in environmental regulation stringencies will negatively affect the economic growth of countries by weakening their competitiveness. Apart from this, it has been determined that the share of renewable energy consumption in total energy consumption is negatively related to total factor productivity. Thus, it is revealed that environmental quality reduces competitiveness.

 Recently, countries with pollution-intensive companies have been excluded from foreign trade and cannot even sell their products to their domestic markets. Therefore, it becomes an inherent necessity for them to reduce the negative environmental externalities they create. In order to internalize negative externalities, they have to develop environmental regulations. Thus, companies face the problem of imposing additional costs. Companies that fear that their competitiveness will decrease do not want to bear additional costs with environmental regulations. In todays world, where having a competitive economy is important, the impact of environmental regulations on competitiveness is gaining importance. In this context, the main goal of the study is to investigate the impact of environmental regulations on competitiveness. Panel-difference GMM, a dynamic panel data method, was used in the empirical analysis of the study. Due to limited access to data, the study covers the years 1995-2012. In the study, total factor productivity was used to represent competitiveness. According to the findings; It has been revealed that the increase in environmental policies is negatively related to total factor productivity. Therefore, the Strong Porter Hypothesis could not be confirmed. Thus, it has been determined that the increase in environmental regulation stringencies will negatively affect the economic growth of countries by weakening their competitiveness. Apart from this, it has been determined that the share of renewable energy consumption in total energy consumption is negatively related to total factor productivity. Thus, it is revealed that environmental quality reduces competitiveness.

 Son dönemde, kirlilik yoğun firmalara sahip olan ülkeler dış ticaretten dışlanabilmekte, hatta ürünlerini iç pazarlarına bile satamamaktadırlar. Bundan dolayı, yarattıkları negatif çevresel dışsallıkları azaltmaları onlar için içsel bir zorunluluk olarak ortaya çıkmaktadır. Negatif dışsallıkları içselleştirmek için ise çevresel düzenlemeler geliştirmek zorundadırlar. Böylece firmalara ilave maliyetlerin yüklenmesi sorunu ile karşı karşıya kalmaktadırlar. Rekabet güçlerinin düşeceğinden korkan firmalar çevresel düzenlemeler ile ilave maliyetlere katlanmak istememektedirler. Rekabetçi bir ekonomiye sahip olmanın önemli olduğu günümüz dünyasında çevresel düzenlemelerin de rekabet gücüne etkisi önem kazanmaktadır. Bu bağlamda, çalışmanın temel hedefi, çevresel düzenlemelerin rekabet gücüne etkisini araştırmaktır. Çalışmanın, ampirik analizinde dinamik panel veri yöntemi olan Panel-fark GMM kullanılmıştır. Verilere erişim kısıtı nedeni ile çalışma 1995-2012 yıllarını kapsamaktadır. Çalışmada rekabet gücünü temsilen toplam faktör verimliliği kullanılmıştır. Bulgulara göre; çevre politikalarındaki artışın toplam faktör verimliliği ile negatif ilişkili olduğu ortaya konulmuştur. Bundan dolayı, Güçlü Porter Hipotezi doğrulanamamıştır. Böylece, çevresel düzenleme katılıklarındaki artışın, ülkelerin rekabet güçlerini zayıflatarak ekonomik büyümelerini de negatif etkileyeceği belirlenmiştir. Bunun dışında, yenilenebilir enerji tüketiminin toplam enerji tüketimi içindeki payının ise toplam faktör verimliliği ile yine negatif ilişkili olduğu tespit edilmiştir. Böylece çevre kalitesinin rekabet gücünü azalttığı ortaya konulmuş olmaktadır.

Article Details

THE EFFECT OF ENVIRONMENTAL QUALITY AND ENVIRONMENTAL REGULATIONS ON COMPETITIVENESS

Authors:

Figen Tombak | Hayriye Atik

Publisher:

Erciyes University

Main Topics:

Panel Veri Analizi | Çevre Ekonomisi

Journal:

Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Issue 68, pp.49-56

Document Type:

Article

Publication Date:

8/2024

Document Language:

Turkish

Document ID (Org No.):

2001325313

pISSN:

1301-3688

Environmental Quality

Environmental Regulations

Panel-GMM Difference

Strong Porter HypothesisÇevre Kalitesi

Çevresel Düzenlemeler

Panel-fark GMM

Güçlü Porter Hipotezi

Issues

Article Details

Authors: Figen Tombak | Hayriye Atik

Publisher: Erciyes University

Main Topics: Panel Veri Analizi | Çevre Ekonomisi

Journal: Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Issue 68, pp.49-56

Document Type: Article

Publication Date: 8/2024

Document Language: Turkish

Document ID (Org No.): 2001325313

pISSN: 1301-3688

Issues

Authors:

Figen Tombak | Hayriye Atik

Publisher:

Erciyes University

Main Topics:

Panel Veri Analizi | Çevre Ekonomisi

Journal:

Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi Issue 68, pp.49-56

Document Type:

Article

Publication Date:

8/2024

Document Language:

Turkish

Document ID (Org No.):

2001325313

pISSN:

1301-3688