DOES FINANCIAL DEVELOPMENT AFFECT ENVIRONMENTAL QUALITY? EMPIRICAL EVIDENCE FOR EMERGING MARKET ECONOMIES

Yıl 2017, , 535 - 552, 01.08.2017

Emrah Koçak

https://doi.org/10.17130/ijmeb.2017331326

Cited By: 9

Öz

This study investigates the relationship between financial development and CO2 emissions for Emerging Market Economies EMEs over the period 1982-2010 within a multivariate framework. In this context panel cointegration, panel DOLS and panel vector error correction model based on Granger causality analiysis methods have been used in this study. The panel cointegration test comfirms a long-run equilibrium relationship between variables. The panel DOLS results show that financial development has negative effects on CO2 emission. Also, The Granger causality test reveals a unidirectional causality from financial development to CO2 emissions in both the short run and the long run, The empiricial results indicate that financial development is an important factor for the improvement of environmental quality

Anahtar Kelimeler

Financial Development, CO2, Emerging Market Economies, Panel Data

FİNANSAL GELİŞME ÇEVRESEL KALİTEYİ ETKİLER Mİ? YÜKSELEN PİYASA EKONOMİLERİ İÇİN AMPİRİK KANITLAR

Öz

Bu çalışma 1982-2010 dönemi Yükselen Piyasa Ekonomilerinde finansal gelişme ve CO2 salınımı arasındaki ilişkiyi çok değişkenli bir çerçevede araştırmaktadır. Bu kapsamda çalışmada panel eşbütünleşme, panel dinamik en küçük kareler DOLS ve panel vektör hata düzeltme modeline dayalı Granger nedensellik analiz yöntemleri kullanılmıştır. Panel eşbütünleşme testi değişkenler arasındaki uzun dönemli denge ilişkisini desteklemektedir. Panel DOLS sonuçları finansal gelişmenin CO2 salınımı üzerinde negatif bir etkisi olduğunu göstermektedir. Granger nedensellik testi hem kısa hem de uzun dönemde finansal gelişmeden CO2 salınımına doğru tek yönlü bir nedensellik ilişkisini ortaya koymaktadır. Ampirik sonuçlar, finansal gelişmenin çevresel kalitenin geliştirilmesi için önemli bir faktör olduğunu işaret etmektedir.

Anahtar Kelimeler

Finansal Gelişme, CO2, Yükselen Piyasa Ekonomileri, Panel Veri

Kaynakça

• Akorede, M. F., Hizam, H., Ab Kadir, M. Z. A., Aris, I., & Buba, S. D. (2012). Mitigating the anthropogenic global warming in the electric power industry. Renewable and Sustainable Energy Reviews, 16(5), 2747-2761.
• Al-Mulali, U., Tang, C. F., & Ozturk, I. (2015). Does financial development reduce environmental degradation? Evidence from a panel study of 129 countries. Environmental Science and Pollution Research, 22(19), 1-10.
• Apergis, N., & Payne, J. E. (2011). Renewable and non-renewable electricity consumption– growth nexus: Evidence from emerging market economies. Applied Energy, 88(12), 5226-5230.
• Bilgili, F., Koçak, E., & Bulut, Ü. (2016a). The dynamic impact of renewable energy consumption on CO2 emissions: A revisited environmental kuznets curve approach. Renewable and Sustainable Energy Reviews, 54, 838-845.
• Bilgili, F., Ozturk, İ., Koçak, E., Bulut, Ü., Pamuk, Y., Muğaloğlu, E., & Bağlıtaş, H. H. (2016b). The influence of biomass energy consumption on CO2 emissions: A wavelet coherence approach. Environmental Science and Pollution Research, 23(19), 19043-19061.
• Bilgili, F., Ozturk, I., Kocak, E., & Bulut, U. (2017). Energy consumption-youth unemployment nexus in Europe: Evidence from panel cointegration and panel causality analyses. International Journal of Energy Economics and Policy, 7(2), 193-201.
• Boutabba, M. A. (2014). The impact of financial development, income, energy and trade on carbon emissions: Evidence from the Indian economy. Economic Modelling, 40, 33-41.
• Brunnschwiler, C. N. (2009). Finance for renewable energy: An empirical analysis of developing and transition economies. CER-ETH-Center of Economic Research at ETH Zurich, Working Paper. (117).
• Capelle-Blancard, G., & Laguna, M. A. (2010). How does the stock market respond to chemical disasters?. Journal of Environmental Economics and Management, 59(2), 192-205.
• Cicerone, R. J., Barro, E. J., & Dickinson, R. E. (2001). Climate change science: An analysis of some key questions. Washington DC., USA: National Academy Press.
• Cole, M. A., Rayner, A. J., & Bates, J. M. (1997). The environmental kuznets curve: An empirical analysis. Environment and Development Economics, 2(4), 401-416.
• Çeştepe, H., & Yıldırım, E. (2016). Türkiye’de finansal gelişme ve ekonomik büyüme ilişkisi. Uluslararası Yönetim İktisat ve İşletme Dergisi, 30, 12-26.
• Escobar, J. C., Lora, E. S., Venturini, O. J., Yáñez, E. E., Castillo, E. F., & Almazan, O. (2009). Biofuels: Environment, technology and food security. Renewable and Sustainable Energy Reviews, 13(6), 1275-1287.
• Farhani, S., & Ozturk, I. (2015). Causal relationship between CO2 emissions, real GDP, energy consumption, financial development, trade openness and urbanization in Tunisia. Environmental Science and Pollution Research, 22(20), 1-14.
• Grossman, G. M., & Krueger, A. B. (1991). Environmental impacts of A North American free trade agreement. National Bureau of Economic Research, 3914.
• Grossman, G. M., & Krueger, A. B. (1995). Economic growth and the environment. The Quarterly Journal of Economics, 110, 353-77.
• Hoffmann, R., Lee, C. G., Ramasamy, B., & Yeung, M. (2005). FDI and pollution: A Granger causality test using panel data. Journal of International Development, 17(3), 311-317.
• Im, K. S., Pesaran, M. H., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels. Journal of Econometrics, 115(1), 53-74.
• International Energy Agency (IEA, 2014). CO2 Emissions from fuel combustion-highlights.
• Intergovernmental Panel on Climate Change (IPCC, 1990). Working Group III, Climate change: Formulation of response strategies. Washington D.C.: Island Press.
• Jalil, A., & Feridun, M. (2011). The impact of growth, energy and financial development on the environment in China: A Cointegration Analysis. Energy Economics, 33(2), 284-291.
• Jensen, V. M. (1996). Trade and environment: The pollution haven hypothesis and the ındustrial flight hypothesis; Some perspectives on theory and empirics. University of Oslo, Centre for Development and the Environment.
• Koçak, E. (2014). Türkiye’de çevresel kuznets eğrisi hipotezinin geçerliliği: ARDL sınır testi yaklaşımı. İşletme ve İktisat Çalışmaları Dergisi, 2(3). 62-73.
• Koçak, E., & Şarkgüneşi, A. (2017). The renewable energy and economic growth nexus in Black Sea and Balkan countries. Energy Policy, 100, 51-57.
• Konar, S., & Cohen, M. A. (2001). Does the market value environmental performance?. Review of Economics and Statistics, 83(2), 281-289.
• Kumbaroglu, G., Karalı, N. & Arıkan, Y. (2008). CO2, GDP and RET: An aggregate economic equilibrium analysis for Turkey. Energy Policy, 36(7), 2694-2708.
• Levin, A., Lin, C. F., & Chu, C. S. J. (2002). Unit root tests in panel data: Asymptotic and finite- sample properties. Journal of Econometrics, 108(1), 1-24.
• Lutsey, N., & Sperling, D. (2008). America’s bottom-up climate change mitigation policy. Energy Policy, 36(2), 673-685.
• Nazlıoğlu, S., & Soytaş, U. (2012). Oil price, agricultural commodity prices, and the Dollar: A panel cointegration and causality analysis. Energy Economics, 34(4), 1098-1104.
• Ozturk, I., & Acaravci, A. (2013). The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey. Energy Economics, 36, 262- 267.
• Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(S1), 653-670.
• Pedroni, P. (2001). Purchasing power parity tests in cointegrated panels. Review of Economics and Statistics, 83(4), 727-731.
• Pedroni, P. (2004). Panel cointegration: Asymptotic and finite sample properties of pooled time series tests with an application to the PPP Hypothesis. Econometric Theory, 20(03), 597-625.
• Rao, S. M. (1996). The effect of published reports of environmental pollution on stock prices. Journal of Financial and Strategic Decisions, 9, 25-32.
• Richard, P. (2010). Financial market ınstability and CO2 emissions. Cahier de Recherche/ Working Paper, 10, 20.
• Sadorsky, P. (2010). The Impact of financial development on energy consumption in emerging economies. Energy Policy, 38(5), 2528-2535.
• Selden, T. M., & Song, D. (1994). Environmental quality and development: Is there a kuznets curve for air pollution emissions?. Journal of Environmental Economics and Management, 27(2), 147-162.
• Shahbaz, M. (2013). Does financial ınstability ıncrease environmental degradation? Fresh evidence from Pakistan. Economic Modelling, 33, 537-544.
• Shahbaz, M., Solarin, S. A., Mahmood, H., & Arouri, M. (2013). Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis. Economic Modelling, 35, 145-152.
• Tamazian, A., & Rao, B. B. (2010). Do economic, financial and ınstitutional developments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32(1), 137-145.
• Tamazian, A., Chousa, J. P., & Vadlamannati, K. C. (2009). Does higher economic and financial development lead to environmental degradation: Evidence from BRIC countries. Energy Policy, 37(1), 246-253.
• Wuebbles, D. J., Atul, K. J., & Watts, R. G. (2002). Concerns about climate change and global warming. In R.G. Watts (ed.), Innovative energy strategies for CO2 stabilization (pp.1- 26). Cambridge University Press.
• Yuxiang, K., & Chen, Z. (2011). Financial development and environmental performance: Evidence from China. Environment and Development Economics, 16(01), 93-111.
• Zhang, Y. J. (2011). The impact of financial development on carbon emissions: An empirical analysis in China. Energy Policy, 39(4), 2197-2203.