The Impact of Monetary Policy on Environmental Degradation: A Comparative Analysis of Advanced and Emerging Economies

Authors : Ayşe Damla Turan, Ayşen Sivrikaya

Pages : 217-235

Doi:10.17233/sosyoekonomi.2025.03.11

View : 100 | Download : 104

Publication Date : 2025-07-17

Article Type : Research Paper

Abstract :This study examines the impact of monetary policy on environmental degradation by applying the two-step system generalised method of moments (GMM) methodology and utilising panel data from 58 countries (1995-2021). Additionally, a comparative analysis of advanced and emerging economies is conducted. The findings reveal that while expansionary monetary policy significantly increases environmental degradation in emerging economies, no significant relationship is observed in advanced economies. This underscores the critical need to integrate sustainability into monetary policy frameworks. It is vital for long-term sustainable growth that central banks assess the environmental impacts of their activities, prioritise green investments, and promote green financial instruments.
Keywords : Çevresel Bozulma, Para Politikası, Gelişmekte Olan Ekonomiler, Gelişmiş Ekonomiler, İki Aşamalı Sistem GMM

ORIGINAL ARTICLE URL