An Analysis on The Nexus Between Green Environment and Financial Development of Turkic States
An Analysis on The Nexus Between Green Environment and Financial Development of Turkic States

Summary/Abstract: This study aims to investigate the financial sector's impact on environmental degradation in the Turkic States and Türkiye. The financial industry is an important tool in preventing environmental degradation in almost every field in newly developing economies. For this purpose, three separate models were developed in the study to evaluate the impact of financial development on the ecological footprint as an indicator of environmental degradation between 1998-2020. In the analysis, the cointegration relationship between the variables was first tested, and then parameter estimates were made with the FMOLS method. According to the results obtained, the environmental Kuznets curve is valid. The ecological footprint and financial development are negatively related. It was seen that the relationship between financial development and growth reduced the ecological footprint; however, there was no connection between financial development and renewable energy. This may mean that the renewable energy sector is not yet effective enough.

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