• Energy Research

The sharp upturn of energy and food prices have become serious challenges almost all over the globe. Despite the voluminous literature on the relationship between energy prices and food prices, the existing research, however, mostly relied on linear frameworks and aggregate measures of energy prices. To improve the current know-how about the interaction between energy and food prices, this study aims to apply nonlinear and time frequency techniques (NARDL and Wavelet Coherence Transform), using four measures as proxies for energy prices (Brent, West Texas, and Dubai oil prices as well as natural gas). The data consists of 288 monthly observations extending from 1997M01 to 2020M12. The NARDL results confirm the asymmetrical relationship between energy prices and food prices. In particular, in the long run the positive shocks of Brent oil price and natural gas are found to have greater and long-lasting effect on food prices. The West Texas and Dubai oil prices also disclose similar effects but in the shorter runs. The Wavelet analysis uncovers that, in the medium and longer runs especially between eight- and sixteen-months, energy prices and policy uncertainty lead food prices with positive signs. Accordingly, various policy suggestions have been provided.

The sharp upturn of energy and food prices have become serious challenges almost all over the globe. Despite the voluminous literature on the relationship between energy prices and food prices, the existing research, however, mostly relied on linear frameworks and aggregate measures of energy prices. To improve the current know-how about the interaction between energy and food prices, this study aims to apply nonlinear and time frequency techniques (NARDL and Wavelet Coherence Transform), using four measures as proxies for energy prices (Brent, West Texas, and Dubai oil prices as well as natural gas). The data consists of 288 monthly observations extending from 1997M01 to 2020M12. The NARDL results confirm the asymmetrical relationship between energy prices and food prices. In particular, in the long run the positive shocks of Brent oil price and natural gas are found to have greater and long-lasting effect on food prices. The West Texas and Dubai oil prices also disclose similar effects but in the shorter runs. The Wavelet analysis uncovers that, in the medium and longer runs especially between eight- and sixteen-months, energy prices and policy uncertainty lead food prices with positive signs. Accordingly, various policy suggestions have been provided.

Along with the growth and globalization of the whole world economy since the First Industrial Revolution, the production and use of fossil fuels have led to increased CO2 emissions and, ultimately, significant environmental degradation. The impact of globalization, economic growth, and renewable energy sources on CO2 may show trends with different turning points in developing countries, and estimations may need to follow Fourier-type functions to capture the frequency domain. Therefore, the aim of this study is to examine the effects of renewable energy production, economic globalization, and economic growth on CO2 emissions for Turkey in the period 1971-2006 with Fourier autoregressive distribution lag (ADL) cointegration, DOLS, and Fourier-Granger causality tests. The originality of this study is the estimation of a model of CO2 emissions with a Fourier-type function for the first time. The findings indicate a negative relationship between renewable energy production and CO2 emissions and a positive relationship between economic globalization and economic growth and CO2 emissions. In addition, according to the empirical results, there exists a one-way causality relationship between economic globalization to CO2 and economic globalization to renewable energy production, and there is evidence of a bidirectional causality relationship between economic globalization and economic growth in this study.

Along with the growth and globalization of the whole world economy since the First Industrial Revolution, the production and use of fossil fuels have led to increased CO2 emissions and, ultimately, significant environmental degradation. The impact of globalization, economic growth, and renewable energy sources on CO2 may show trends with different turning points in developing countries, and estimations may need to follow Fourier-type functions to capture the frequency domain. Therefore, the aim of this study is to examine the effects of renewable energy production, economic globalization, and economic growth on CO2 emissions for Turkey in the period 1971-2006 with Fourier autoregressive distribution lag (ADL) cointegration, DOLS, and Fourier-Granger causality tests. The originality of this study is the estimation of a model of CO2 emissions with a Fourier-type function for the first time. The findings indicate a negative relationship between renewable energy production and CO2 emissions and a positive relationship between economic globalization and economic growth and CO2 emissions. In addition, according to the empirical results, there exists a one-way causality relationship between economic globalization to CO2 and economic globalization to renewable energy production, and there is evidence of a bidirectional causality relationship between economic globalization and economic growth in this study.