The Effect of Agricultural and Financial Sectors on Environmental Quality: Testing the Validity of the LCC Hypothesis in Türkiye

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doi:10.18016/ksutarimdoga.vi.1708492

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The Effect of Agricultural and Financial Sectors on Environmental Quality: Testing the Validity of the LCC Hypothesis in Türkiye

Abstract

The increasing destruction of nature after the Industrial Revolution has revealed that we need to be more sensitive to the environment. These adverse effects, mainly observed in the agriculture, forestry, and fishing sectors, have been the subject of limited studies in the literature. This study attempts to determine the impact of the agricultural and financial sectors on environmental quality in Türkiye. The first objective of this study is to test the hypothesis of load capacity curve (LCC) validity regarding the in Türkiye, focusing on the agricultural and financial sectors. The second is to calculate the level of GDP per capita, which is the turning point from environmental degradation to environmental quality. To this end, the study uses annual data from 1990 to 2021, indicating that the series has different levels of stationarity as a result of stationarity tests. It is evident that the Augmented Autoregressive Distributed Lag (A-ARDL) model is the best fitted as the dependent variable, the load capacity factor is I(0). The findings reveal that there is a cointegration relationship among the variables. Model results demonstrate that development in agricultural sectors increases environmental quality (EQ), whereas development in the financial sector causes environmental degradation (ED). Furthermore, the result proves that the hypothesis of LCC is valid for Türkiye, and it is detected that 20.720 USD is the amount of GDP per capita at which environmental degradation stops and environmental quality begins to increase. The findings show that policymakers should give more support and importance to the agricultural sectors to ensure increased environmental quality.

Keywords

Tarım ve Finans Sektörlerinin Çevresel Kalite Üzerine Etkileri: Türkiye'de LCC Hipotezinin Geçerliliğinin Test Edilmesi

Öz

Sanayi devrimi sonrasında artan doğa tahribatı, çevreye karşı daha duyarlı davranmamız gerektiğini ortaya koymuştur. Özellikle tarım-ormancılık-balıkçılık sektörlerinde gözlemlenen bu olumsuz etkiler, sınırlı sayıda akademik çalışmaya konu olmuştur. Bu çalışma, Türkiye’de tarımsal sektörler ile finans sektörünün, çevre kalitesi üzerindeki etkisini belirlemeye çalışmaktadır. Bu kapsamda, çalışmanın temel iki amacı bulunmaktadır. Bunlardan ilki; tarım ve finans sektörleri odağında, Türkiye’de yük kapasite eğrisine (LCC) ilişkin hipotezin geçerliliğini sınamaktır. İkinci amaç ise çevresel bozulmadan, çevresel kaliteye geçiş (dönüş) noktası olan kişi başı milli gelir düzeyini hesaplamaktır. Bu amaçla, 1990-2021 arası döneme ait yıllık verilerin kullanıldığı çalışmada, durağanlık testleri neticesinde serilerin farklı mertebelerden durağanlığa sahip oldukları görülmüştür. Bağımlı değişken olan yük kapasite faktörünün I(0) olması nedeniyle A-ARDL yöntemi tercih edilmiştir. Bulgular, değişkenler arasında eşbütünleşme ilişkinin varlığını göstermektedir. Model sonuçları, tarımsal sektörlerdeki gelişimin çevresel kaliteyi arttırdığını buna karşın finans sektöründeki gelişimin ise çevresel bozulmaya neden olduğunu yönündedir. Ayrıca Türkiye için LCC hipotezi geçerli olduğu tespit edilmiş olup çevresel bozulmanın durup, çevresel kalitedeki artışın başlayacağı kişi başı milli gelir düzeyi 20.720 ABD doları olarak hesaplanmıştır. Elde edilen bulgular, politika yapıcıların çevresel kalitedeki artışı sağlamak için tarımsal sektörlere daha fazla destek ve önem vermesi gerektiğini göstermiştir.

Anahtar Kelimeler

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Details

Primary Language

English

Subjects

Sustainable Agricultural Development , Agricultural Economics (Other)

Journal Section

Research Article

Authors

Ender Baykut ^*
0000-0002-3908-4008
Türkiye

Early Pub Date

January 21, 2026

Publication Date

January 21, 2026

Submission Date

May 28, 2025

Acceptance Date

September 28, 2025

Published in Issue

Year 1970 Volume: 29 Number: 2

DOI

https://doi.org/10.18016/ksutarimdoga.vi.1708492

IZ

https://izlik.org/JA27PP33MW

Cite

RIS / Bibtex

APA

Baykut, E. (2026). The Effect of Agricultural and Financial Sectors on Environmental Quality: Testing the Validity of the LCC Hypothesis in Türkiye. Kahramanmaraş Sütçü İmam Üniversitesi Tarım Ve Doğa Dergisi, 29(2), 429-445. https://doi.org/10.18016/ksutarimdoga.vi.1708492