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The error you got says that environment variable is not set - this means that this launch file expected that TURTLEBOT_GAZEBO_FILE would be set. (to check it, try echo $TURTLEBOT_GAZEBO_WORLD_FILE).
I suggest you to install turtlebot_gazebo package by running sudo apt-get install ros-kinetic-turtlebot-gazebo
and then try to launch it as you did initially (roslaunch turtlebot_gazebo turtlebot_world
)