The Impact of Monetary Policy on Environmental Degradation: A Comparative Analysis of Advanced and Emerging Economies

Year 2025, Volume: 33 Issue: 65, 217 - 235, 17.07.2025

Ayşe Damla Turan Ayşen Sivrikaya

https://doi.org/10.17233/sosyoekonomi.2025.03.11

Abstract

This study examines the impact of monetary policy on environmental degradation by applying the two-step system generalised method of moments (GMM) methodology and utilising panel data from 58 countries (1995-2021). Additionally, a comparative analysis of advanced and emerging economies is conducted. The findings reveal that while expansionary monetary policy significantly increases environmental degradation in emerging economies, no significant relationship is observed in advanced economies. This underscores the critical need to integrate sustainability into monetary policy frameworks. It is vital for long-term sustainable growth that central banks assess the environmental impacts of their activities, prioritise green investments, and promote green financial instruments.

Keywords

Environmental Degradation , Monetary Policy , Emerging Economies , Advanced Economies , Two-Step System GMM

Para Politikasının Çevresel Bozulma Üzerindeki Etkisi: Gelişmiş ve Gelişmekte Olan Ekonomilerin Karşılaştırmalı Analizi

Abstract

Bu çalışma, para politikasının çevresel bozulma üzerindeki etkilerini iki aşamalı sistem genelleştirilmiş momentler (GMM) metodolojisini uygulayarak ve 58 ülkeden (1995-2021) elde edilen panel verileri kullanarak incelemektedir. Ayrıca, gelişmiş ve gelişmekte olan ekonomiler için karşılaştırmalı bir analiz yapılmıştır. Bulgular, genişletici para politikasının gelişmekte olan ülkelerde çevresel bozulmayı anlamlı şekilde artırırken, gelişmiş ekonomilerde anlamlı bir ilişki gözlemlenmediğini ortaya koymaktadır. Bu durum, para politikası çerçevelerine sürdürülebilirliğin entegre edilmesi gerektiğini vurgulamaktadır. Merkez bankalarının, faaliyetlerinin çevresel etkilerini değerlendirmesi, yeşil yatırımları önceliklendirmesi ve yeşil finansal araçları teşvik etmesi uzun vadeli sürdürülebilir büyüme için hayati önem taşımaktadır.

Keywords

Çevresel Bozulma , Para Politikası , Gelişmekte Olan Ekonomiler , Gelişmiş Ekonomiler , İki Aşamalı Sistem GMM

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