Abstract:

In recent years, environmental issues such as environmental sustainability, climate change, and global warming have started to come to the fore frequently by many academic and financial side around the world. This causes institutions and organizations which are operating in the real economy and financial sector to give more importance to environment-oriented activities. It is not yet clear in which direction the composite leading indicators will change if all economic and financial activities gain a more environmentally oriented structure. In this study, the Granger causality method was used to determine whether there is a causal relationship between Turkey's total energy consumption, total greenhouse gas emissions, and Turkey's gross domestic product between 1990 and 2020. For this purpose unit root analyzes were performed to determine the degree of stationarity of the series of variables. Then, Engle-Granger cointegration tests were applied to analyze whether there is a long-term cointegration relationship between the series and it was determined that the series were cointegrated in the long run. Finally, Granger causality tests were applied to test the short-term causality relationship between the variables and it was concluded that they did not have a short-term causality relationship between the series.

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