The Relationship Between Renewable Energy Consumption and Stock Market Capitalisation and Carbon Emissions: Insights from G20 Countries

Abstract

The research question of whether carbon emissions affect the economic growth and financial development of countries is discussed in the literature. Based on this, this study examines the relationship between carbon emissions (CO2) market capitalisation and renewable energy consumption, which are financial development indicators. The model established with the carbon emissions, renewable energy consumption, market value, fixed capital investments and gross domestic product indicators of the G20 countries between 1992 and 2018 was tested with panel data cointegration analysis and panel causality analysis. As a result of the empirical analysis, it has been found that there is a statistically significant and negative relationship between renewable energy consumption, market capitalisation and carbon emissions, and there is a bidirectional causality relationship between market capitalisation and carbon emissions. The results are that the effective use of energy and the developments in the financial system will contribute to sustainable development policies.

Keywords

• Carbon Emissions
• Renewable Energy
• Stock Market Capitalisation
• Panel Data Analysis

Yenilenebilir Enerji Tüketimi ve Piyasa Kapitalizasyonu ile Karbon Emisyonu Arasındaki İlişki: G20 Ülkeleri Örneği”

Abstract

Karbon emisyonlarının, ülkelerin ekonomik büyümelerini ve finansal gelişimlerini etkileyip etkilemediği araştırma sorusu literatürde tartışılmaktadır. Buna dayanarak bu çalışmanın amacı, finansal gelişmişlik göstergelerinden olan piyasa kapitalizasyonları ve yenilenebilir enerji tüketimi ile karbon emisyonu (CO2) ilişkisini incelemektir. G20 ülkelerinin 1992-2018 dönemleri arasındaki karbon emisyonu, yenilenebilir enerji tüketimi, piyasa kapitalizasyonu, sabit sermaye yatırımları ve gayrisafi yurtiçi hâsıla göstergeleri ile kurulan model panel veri eşbütünleşme analizi ve panel nedensellik analizi ile test edilmiştir. Ampirik analizler sonucunda yenilenebilir enerji tüketimi, piyasa kapitalizasyonu ile karbon emisyonu arasında istatistiksel olarak anlamlı ve negatif yönde bir ilişkinin olduğu, ayrıca piyasa kapitalizasyonu ile karbon emisyonu arasında çift yönlü nedensellik ilişkisi olduğuna ulaşılmıştır. Sonuçlar, enerjinin etkin kullanılması ile finansal sistemde yaşanacak olan gelişmelerin sürdürülebilir kalkınma politikalarına katkı sağlayacağı yönündedir.

Keywords

• Karbon Emisyonu
• Yenilenebilir Enerji
• Piyasa Kapitalizasyonu
• Panel Veri Analizi

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