Özet:

Global climate change is one of the most important challenges that threaten humanity. Scientific research points out that carbon dioxide (CO2) emissions are the most important source of greenhouse gas emissions that cause climate change and global warming. In this study, the relationship between financial development and carbon emissions in G7 countries is investigated by using new panel data estimators that take into consideration cross-section dependence and heterogeneity within the framework of the EKC hypothesis. In this study, the carbon emissions per capita was used to respresent to environmental degradation while the domestic credit was used to represent financial development. The findings show that financial development and energy consumption contribute significantly to carbon emissions. Finally, the EKC hypothesis, which is an important place in the literature of environmental economics, has been tested for G7 countries. Although the hypothesis does not apply to the width of the panel, the static model is concluded that the two countries and the dynamic model are valid for three countries

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