Enflasyondaki İstikrarsızlığın CO2 Emisyonuna Etkileri: Türkiye Örneği
The Impacts of Inflation Instability on CO2 Emissions: The Case of Turkey

Author(s): Ayşe Arı
Subject(s): National Economy, Energy and Environmental Studies, Environmental and Energy policy, International relations/trade, Economic development, Environmental interactions
Published by: Özgür Yayın Dağıtım Ltd. Şti.
Keywords: Turkey; CO2 Emissions;
Summary/Abstract: Environmental pollution and inflation are among the most important problems for developing countries. In recent years, it has been stated that there is a relationship between instability in inflation and environmental pollution. The aim of this study is to investigate the effect of inflation instability on CO2 emissions for the Turkish economy. In this context, the period of 1974-2015 was analyzed by using the Bayern-Hanck (2013) cointegration test and, FMOLS and CCR estimators. According to the results, inflation instability has positive impact on CO2 emissions. It is also seen that the increase in energy consumption, trade openness and economic growth cause increase in CO2 emissions. The development of the financial sector is negatively related to CO2 emissions. In conclusion, we can say that a stable inflation and a strong financial system will contribute to the reduction of CO2 emissions. For this reason, the authorities will be able to gain in both respects by implementing policies to ensure stability in inflation which also contribute to the reduction of environmental pollution.

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