Evaluation of The Relationship Between Carbon Dioxide Release and Selected Macroeconomic Data: Panel ARDL Analysis


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Çakır Gündoğdu B.

3 rd International Conference on Scientific and Academic Research, Konya, Turkey, 25 - 26 December 2023, pp.184-185

  • Publication Type: Conference Paper / Summary Text
  • City: Konya
  • Country: Turkey
  • Page Numbers: pp.184-185
  • Istanbul Gelisim University Affiliated: Yes

Abstract

Although the relationship between nature and money was thought of as two concepts that are far from each other, today's increasing temperatures due to climate change shows that events occurring in nature such as floods and disasters have reflections on the economy. While Classical economic theories, which emerged towards the end of the 18th century, defended the view that resources are unlimited, today it is thought that resources are scarce and how today's needs can be met without consuming the resources of future generations. Climate change, which affects many areas such as trade, agricultural production, insurance costs, financial products and labor force, has gained an intricate structure intertwined with economics. In this context, the aim of the study is to examine the reflections of the concept of climate change on the economy. In the study, the countries that create the most carbon emissions among the G-20 countries were determined and the effects of carbon emissions in these countries on foreign trade, financial development index, foreign direct investments and renewable energy consumption were investigated. In the study covering the 1990-2018 time period, the Panel ARDL method was applied. According to the application results, a 1% increase in renewable energy consumption (LNREN) causes a 0.97% decrease in carbon dioxide emissions in the long term, and a 1% increase in foreign direct investments causes a 0.19% decrease in carbon dioxide emissions. A 1% increase in the financial development index of the countries considered increases carbon dioxide emissions by 1.11%, and a 1% increase in the LNTRADE coefficient, which symbolizes foreign trade, increases carbon dioxide emissions by 1.60%. As a result, it has been found that increases in renewable energy consumption and foreign direct investments reduce carbon dioxide emissions for the countries in question, while increases in foreign trade and financial development levels increase carbon dioxide emissions.