The aim of this paper is to examine the causal relationship between financial development, trade, economic
growth, energy consumption and carbon emissions in Turkey for the 1960–2007 period. The bounds F‐test for
cointegration test yields evidence of a long-run relationship between per capita carbon emissions, per capita
energy consumption, per capita real income, the square of per capita real income, openness and financial development. The results show that an increase in foreign trade to GDP ratio results an increase in per capita
carbon emissions and financial development variable has no significant effect on per capita carbon emissions
in the long- run. These results also support the validity of EKC hypothesis in the Turkish economy. It means
that the level of CO2 emissions initially increases with income, until it reaches its stabilization point, then it
declines in Turkey. In addition, the paper explores causal relationship between the variables by using
error-correction based Granger causality models.