Investigation of the role of technological innovation in reducing carbon dioxide damage in Turkey with Fourier tests: Testing the Kuznets curve hypothesis

Rising global environmental concerns have intensified the need to understand the relationship between technological innovation, economic growth, and environmental degradation, particularly in rapidly industrializing economies. This study examines these relationships in Turkiye within the framework of the Environmental Kuznets Curve (EKC) hypothesis. Using annual data from 1984 to 2019, we employ Fourier-based econometric techniques, including unit root tests, cointegration analysis, and causality testing, to account for potential structural breaks and nonlinearities. Our findings reveal that while technological innovation currently contributes to increased carbon dioxide emissions, with a 1% increase in innovation leading to a 0.061% rise in environmental degradation, there exists an inverted U-shaped relationship between economic growth and environmental degradation, supporting the EKC hypothesis for Turkiye. Causality tests indicate unidirectional relationships flowing from environmental degradation to both technological innovation and economic growth. These results suggest that Turkiye requires strategic policy interventions focusing on green technologies and sustainable innovation to transition toward environmental sustainability while maintaining economic growth.