Examining the Relationship Between Climate Change, Energy Consumption, and the Financial System: The Case of E7 Countries

Year 2025, Volume: 37 Issue: UYIK 2024 Special Issue, 77 - 87

Naime İrem Duran , Özge Demirkale

https://doi.org/10.7240/jeps.1490561

Abstract

This study aims to investigate the correlation among climate change, energy consumption, and the financial system, using the E7 countries as a case study. The E7 comprises emerging economies including Brazil, China, India, Russia, Turkey, Indonesia, and Mexico, which are the primary focus of this research. The research delves into the factors impacting CO2 emissions over the long term, spanning from 1992 to 2020. Results reveal a positive correlation between economic growth and fossil fuel usage with CO2 emissions, while a negative correlation is identified between CO2 emissions and variables such as renewable energy consumption, temperature changes, and capital investments. The study underscores the significance of sustainability and environmental policies for the E7 nations. Recommendations include increasing investments in renewable energy sources, encouraging the adoption of carbon-neutral transportation technologies, and supporting initiatives for forest conservation and afforestation. In conclusion, this study provides valuable insights into the relationship between climate change, energy consumption, and the financial system within E7 countries, offering policy recommendations for achieving sustainability.

Keywords

Climate Change, Energy Consumption, Financial System, E7 Countries

İklim Değişikliği, Enerji Tüketimi Ve Finansal Sistem Arasındaki İlişkinin İncelenmesi: E7 Ülkeleri Örneği

Abstract

This study aims to investigate the correlation among climate change, energy consumption, and the financial system, using the E7 countries as a case study. The E7 comprises emerging economies including Brazil, China, India, Russia, Turkey, Indonesia, and Mexico, which are the primary focus of this research.The research delves into the factors impacting CO2 emissions over the long term, spanning from 1992 to 2020. Results reveal a positive correlation between economic growth and fossil fuel usage with CO2 emissions, while a negative correlation is identified between CO2 emissions and variables such as renewable energy consumption, temperature changes, and capital investments.The study underscores the significance of sustainability and environmental policies for the E7 nations. Recommendations include increasing investments in renewable energy sources, encouraging the adoption of carbon-neutral transportation technologies, and supporting initiatives for forest conservation and afforestation.In conclusion, this study provides valuable insights into the relationship between climate change, energy consumption, and the financial system within E7 countries, offering policy recommendations for achieving sustainability.

Keywords

İklim Değişikliği, Enerji Tüketimi, Finansal Sistem, E7 Ülkeleri

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