An Environmental Impact Assessment of Major Economic Sectors in Turkey: Economics and Law Perspective

Abstract

The most important supporters of sustainable growth for economies are companies in various fields of activity. On the other hand, environmental pollution is a common problem brought about by economic growth in all countries. For this reason, it is necessary to determine the environmental sensitivity of companies seen as the engine of growth. This study aims to examine the effects of major economic sectors on environmental pollution with the framework of the Environmental Kuznets Curve (EKC) hypothesis in Turkey during the period 1985-2017. Another aim of the study is to examine the legal responsibilities of companies in the context of environmental pollution. The study investigated the empirical relationship between variables with the help of Fourier unit root and cointegration tests that allow smooth structural breaks. The results show that the EKC hypothesis is valid only for construction companies. Moreover, construction companies have a negative impact on environmental quality. As a result of the study, various legal regulations were proposed for all companies examined, especially construction companies, to prevent environmental pollution.