International Conference on Eurasian Economies
24-25 August 2021 – Istanbul, TURKEY and ONLINE
Paper properties
Paper ID : 2552
Status : Paper published
Language : Turkish
Topic : Natural Resources and Environment
Presenter: Ph.D. candidate Buket Taştan
Session : 1C Çevre Ekonomisi
Environmental Degradation: Monetary Transmission Mechanism and CO2 Emission
Çevresel Bozulma: Parasal Aktarım Kanalları ve CO2 Emisyonu
- Ph.D. candidate Buket Taştan (Trakya University, Türkiye)
- Assoc. Prof. Dr. Kenan Terzioğlu (Trakya University, Türkiye)
Abstract
As a result of recent changes in traditional risk perception accompanying industrialization and technology, global economic risks are increasingly based on the climate. While risks are considered using a two-dimensional approach in traditional risk perception, risk structures occur in a chain under globalization. In the concept of sustainability, environmental degradation and economic growth establish the link between environmental degradation and other macroeconomic variables. Monetary transmission channels—including the interest, exchange rate, asset price, credit, and expectation channels—impact the real economy and productivity by enabling capital accumulation, the orientation of small funds, and technological diffusion. In this context, the evaluation of the efficiency of monetary transmission channels and environmental degradation policy recommendations need to be addressed, especially, within the industrial sector. Although the cointegration approach is based on the fact that linear combinations of non-stationary series are stationary, cointegration analyses in which structural breaks are defined as dummy variables should be performed since the linear combination may change at a certain point in the sample. This study aims to reveal the effect of industrial production index and energy consumption on greenhouse gas emissions using a structural break approach with cointegration methods. Policy suggestions within the scope of sustainability are evaluated considering the long-term structural results among the variables.
JEL codes: C32, C51, Q56
Taştan, Buket, Terzioğlu, Kenan (2021). "Environmental Degradation: Monetary Transmission Mechanism and CO2 Emission" in Proceedings of International Conference of Eurasian Economies 2021, pp.329-333, Istanbul, TURKEY and ONLINE.
DOI: https://doi.org/10.36880/C13.02552
