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Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye

Cilt: 6 Sayı: 2 29 Temmuz 2025
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Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye

Öz

The effects of global climate change on the economy have made environmental sustainability an essential element of macroeconomic policy frameworks. In recent years, while the position of central banks in combating climate change has been discussed, the consequences of monetary policy implementations in terms of climate change have become increasingly prominent in the literature. The aim of this study is to analyse the effects of monetary policy implementations on climate change in Türkiye. In the study spanning the period 1990-2023, short- and long-run effects are investigated by means of ARDL bounds test and causality relationships between variables are analysed by Toda-Yamamoto test. The findings reveal that monetary expansion triggers climate change in Türkiye. Moreover, causality analyses suggest that there is a bidirectional relationship between the variables. In accordance with these results, it is of utmost importance to design policies by prioritising the effects of monetary policy on environmental sustainability. The central bank may incorporate climate-friendly green monetary policy instruments into its strategies while pursuing its main objective of price stability.

Anahtar Kelimeler

climate change, monetary policy, green monetary policy, ARDL

Kaynakça

  1. Acaravci, A., & Ozturk, I. (2010). On the relationship between energy consumption, CO2 emissions and economic growth in Europe. Energy, 35(12), 5412-5420. https://doi.org/10.1016/j.energy.2010.07.009
  2. Alam, I., & Quazi, R. (2003). Determinants of capital flight: An econometric case study of Bangladesh. International Review of Applied Economics, 17(1), 85-103. https://doi.org/10.1080/713673164
  3. Artan, S., Hayaloğlu, P., & Seyhan, B. (2015). Türkiye’de çevre kirliliği, dışa açıklık ve ekonomik büyüme ilişkisi. Journal of Management and Economics Research, 13(1), 308-325.
  4. Attílio, L. A., Faria, J. R., & Rodrigues, M. (2023). Does monetary policy impact CO2 emissions? A GVAR analysis. Energy Economics, 119, 106559. https://doi.org/10.1016/j.eneco.2023.106559
  5. Bildirici, M., Genç, S. Y., & Ersin, Ö. Ö. (2023). Effects of fiscal and monetary policies, energy consumption and economic growth on CO2 emissions in the Turkish economy: Nonlinear bootstrapping NARDL and nonlinear causality methods. Sustainability, 15(13), 10463. https://doi.org/10.3390/su151310463
  6. Bletsas, K., Oikonomou, G., Panagiotidis, M., & Spyromitros, E. (2022). Carbon dioxide and greenhouse gas emissions: The role of monetary policy, fiscal policy, and institutional quality. Energies, 15(13), 4733. https://doi.org/10.3390/en15134733
  7. Boneva, L., Ferrucci, G., & Mongelli, F. P. (2022). Climate change and central banks: What role for monetary policy?. Climate Policy, 22(6), 770-787. https://doi.org/10.1080/14693062.2022.2070119
  8. Borio, C. E., & Hofmann, B. (2017). Is monetary policy less effective when interest rates are persistently low? (BIS Working Paper No. 628). Bank for International Settlements.
  9. Campiglio, E. (2016). Beyond carbon pricing: The role of banking and monetary policy in financing the transition to a low-carbon economy. Ecological Economics, 121, 220-230. https://doi.org/10.1016/j.ecolecon.2015.03.020
  10. Carney, M. (2015). Breaking the tragedy of the horizon – climate change and financial stability. Bank for International Settlements. https://www.bis.org/review/r151009a.htm (Accessed Date: 13 April 2025).

Kaynak Göster

APA
Kömürcüoğlu, E. D. (2025). Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye. Sosyal Mucit Academic Review, 6(2), 314-335. https://doi.org/10.54733/smar.1701472
AMA
1.Kömürcüoğlu ED. Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye. SMAR. 2025;6(2):314-335. doi:10.54733/smar.1701472
Chicago
Kömürcüoğlu, Elif Duygu. 2025. “Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye”. Sosyal Mucit Academic Review 6 (2): 314-35. https://doi.org/10.54733/smar.1701472.
EndNote
Kömürcüoğlu ED (01 Temmuz 2025) Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye. Sosyal Mucit Academic Review 6 2 314–335.
IEEE
[1]E. D. Kömürcüoğlu, “Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye”, SMAR, c. 6, sy 2, ss. 314–335, Tem. 2025, doi: 10.54733/smar.1701472.
ISNAD
Kömürcüoğlu, Elif Duygu. “Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye”. Sosyal Mucit Academic Review 6/2 (01 Temmuz 2025): 314-335. https://doi.org/10.54733/smar.1701472.
JAMA
1.Kömürcüoğlu ED. Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye. SMAR. 2025;6:314–335.
MLA
Kömürcüoğlu, Elif Duygu. “Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye”. Sosyal Mucit Academic Review, c. 6, sy 2, Temmuz 2025, ss. 314-35, doi:10.54733/smar.1701472.
Vancouver
1.Elif Duygu Kömürcüoğlu. Investigating the Long-Run Effects of Monetary Policy on Climate Change: Evidence from Türkiye. SMAR. 01 Temmuz 2025;6(2):314-35. doi:10.54733/smar.1701472