Abstract:

The aim of this study is to analyze the impact of financial development, economic growth and energy consumption on environmental quality for the economies of E-7 countries (Turkey, India, China, Brazil, Indonesia, Russia and Mexico) using data between 1990 and 2014. For this purpose, the environmental quality measurement, carbon dioxide emissions per person (CO2), the financial development measurement, the ratio of the loans granted to the private sector to GDP, the economic growth measurement, the annual increase in economic growth and the energy consumption measurement, the oil consumption variables per person were also used. In the analysis of variables, the panel data analysis method was used. First, the breusch and Pagan (1980), CDlm Pesaran (2004), CD and Pesaran (2004), Ullah and Yagamata (LMadj PUY) (2008) tests were applied to test the horizontal cutting independence in variables and models. The second generation panel unit root test, which takes into account the horizontal cut dependency because variables and models include horizontal cut dependency, has been used in the Pesaran (2007) CADF (Crosssectional Augmented Dickey Fuller) test. After the variables were made stable, the long-term relationship was tested by Westerlund (2008), Durbin-H Integration. The estimates of the AMG-Augmented Mean Group (Augmented Mean Group) are used to identify the long-term ratio. According to the results of the analysis, the financial development for the economies of Turkey, Indonesia and Russia has improved the quality of the environment. When the results of economic growth are examined, the economic growth for the economies of India, China, Brazil and Mexico has been found to improve the quality of the environment by reducing carbon emissions. For Turkey and Russia, economic growth has been found to reduce the quality of the environment by increasing carbon emissions.

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