Examining the Impact of Financial Development on Carbon Emissions: Insights from Emerging Economies

Umut Halaç; Fatma Deniz Dermenci; Seher Gören Yargı; Melis Gultekin Aslan

Makale detayları

Examining the Impact of Financial Development on Carbon Emissions: Insights from Emerging Economies

Yazarlar:

Umut Halaç | Fatma Deniz Dermenci | Seher Gören Yargı | Melis Gultekin Aslan

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekolojik İktisat

Dergi:

İstanbul İktisat Dergisi Vol.75 Issue 1, pp.156-169

Belge Tipi:

Makale

Yayın Tarihi:

7/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001355192

pISSN:

2602-4152

Anahtar kelimeler:

Özet:

 This study investigates the impact of financial market development on the environmental quality of emerging countries through an analysis of panel data from 21 Emerging Countries covering the period from 2001 to 2023. To accomplish this objective, we constructed stock market-based and banking sectorbased indices to measure the level of financial market development using principal component analysis. We then identified the cross-sectional dependence and employed unit root testing to ensure accurate estimation. By employing a panel ARDL bound test, we demonstrate that financial development positively impacts environmental quality in emerging countries. The findings provide new insights for researchers and policymakers who seek to develop comprehensive energy supply and economic policies to alleviate the adverse effects of pollution. JEL Classification : O1 , O13 , F6 , F64.

 This study investigates the impact of financial market development on the environmental quality of emerging countries through an analysis of panel data from 21 Emerging Countries covering the period from 2001 to 2023. To accomplish this objective, we constructed stock market-based and banking sectorbased indices to measure the level of financial market development using principal component analysis. We then identified the cross-sectional dependence and employed unit root testing to ensure accurate estimation. By employing a panel ARDL bound test, we demonstrate that financial development positively impacts environmental quality in emerging countries. The findings provide new insights for researchers and policymakers who seek to develop comprehensive energy supply and economic policies to alleviate the adverse effects of pollution. JEL Classification : O1 , O13 , F6 , F64.

 This study investigates the impact of financial market development on the environmental quality of emerging countries through an analysis of panel data from 21 Emerging Countries covering the period from 2001 to 2023. To accomplish this objective, we constructed stock market-based and banking sectorbased indices to measure the level of financial market development using principal component analysis. We then identified the cross-sectional dependence and employed unit root testing to ensure accurate estimation. By employing a panel ARDL bound test, we demonstrate that financial development positively impacts environmental quality in emerging countries. The findings provide new insights for researchers and policymakers who seek to develop comprehensive energy supply and economic policies to alleviate the adverse effects of pollution. JEL Classification : O1 , O13 , F6 , F64.

 This study investigates the impact of financial market development on the environmental quality of emerging countries through an analysis of panel data from 21 Emerging Countries covering the period from 2001 to 2023. To accomplish this objective, we constructed stock market-based and banking sectorbased indices to measure the level of financial market development using principal component analysis. We then identified the cross-sectional dependence and employed unit root testing to ensure accurate estimation. By employing a panel ARDL bound test, we demonstrate that financial development positively impacts environmental quality in emerging countries. The findings provide new insights for researchers and policymakers who seek to develop comprehensive energy supply and economic policies to alleviate the adverse effects of pollution. JEL Classification : O1 , O13 , F6 , F64.

Makale detayları

Examining the Impact of Financial Development on Carbon Emissions: Insights from Emerging Economies

Yazarlar:

Umut Halaç | Fatma Deniz Dermenci | Seher Gören Yargı | Melis Gultekin Aslan

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekolojik İktisat

Dergi:

İstanbul İktisat Dergisi Vol.75 Issue 1, pp.156-169

Belge Tipi:

Makale

Yayın Tarihi:

7/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001355192

pISSN:

2602-4152

Financial development

Environmental quality

CO2 Emissions

Panel ARDL bound test

Emerging countries

Sayı

Makale detayları

Examining the Impact of Financial Development on Carbon Emissions: Insights from Emerging Economies

Yazarlar: Umut Halaç | Fatma Deniz Dermenci | Seher Gören Yargı | Melis Gultekin Aslan

Yayıncı: Istanbul University

Ana Başlıklar: Ekolojik İktisat

Dergi: İstanbul İktisat Dergisi Vol.75 Issue 1, pp.156-169

Belge Tipi: Makale

Yayın Tarihi: 7/2025

Belge Dili: İngilizce

Document ID (Org No.): 2001355192

pISSN: 2602-4152

Financial development

Environmental quality

CO2 Emissions

Panel ARDL bound test

Emerging countries

Sayı

Yazarlar:

Umut Halaç | Fatma Deniz Dermenci | Seher Gören Yargı | Melis Gultekin Aslan

Yayıncı:

Istanbul University

Ana Başlıklar:

Ekolojik İktisat

Dergi:

İstanbul İktisat Dergisi Vol.75 Issue 1, pp.156-169

Belge Tipi:

Makale

Yayın Tarihi:

7/2025

Belge Dili:

İngilizce

Document ID (Org No.):

2001355192

pISSN:

2602-4152