The Impact of Financial Development on Carbon Emissions: Evidence from Quantile Panel Regression for EU Countries and Türkiye
Institutions and Economies, cilt.18, sa.4, ss.91-117, 2026 (Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 18 Sayı: 4
- Basım Tarihi: 2026
- Doi Numarası: 10.22452/ijie.vol18no4.4
- Dergi Adı: Institutions and Economies
- Derginin Tarandığı İndeksler: Scopus, Sociology Source Ultimate (EBSCO)
- Sayfa Sayıları: ss.91-117
- Anahtar Kelimeler: Carbon emission, Climate change, Environmental Kuznets curve, Financial development, Panel quantile distribution
- İstanbul Üniversitesi Adresli: Evet
Özet
This study examines the dynamic impact of financial development on carbon emissions in European Union nations and Türkiye from 2010 to 2023. The research utilises panel quantile regression methods to tackle the intrinsic variability in the link between financial development and environmental consequences, offering a more thorough insight than conventional mean-based econometric techniques. The analytical approach facilitates the examination of unique repercussions at various levels of carbon emissions, revealing insights into the distinct effects of financial mechanisms in different environmental circumstances. The findings offer empirical evidence for an N-shaped Environmental Kuznets Curve, indicating a non-linear correlation between economic development and environmental quality. This research significantly enhances the literature by including financial development into the discourse on environmental policy. It underscores the necessity of tailoring financial policies to achieve sustainable development goals. The findings offer critical policy implications, emphasising the role of targeted financial interventions in mitigating environmental harm and aligning economic activities with sustainability objectives. The findings have crucial policy implications, stressing the need for targeted financial measures in minimising environmental impact. To boost empirical credibility, robustness checks utilising Driscoll-Kraay standard errors were undertaken, verifying the consistency of the results across estimation methodologies.