Author(s): Ahmet ?ENGÖNÜL, ?erife Merve KO?ARO?LU
One of the biggest problems of the 21st century is the environmental damage caused by climate change. Today, despite the intense increase in the use of technology, the rise in energy consumption and financial developments make human life easier, it causes permanent environmental problems. When this problem is addressed, there is an increase in production and change of consumption patterns with the effect of industrialization that started with the industrial revolution. The new formed structure became the most important factor that increase the use of fossil resources. In this direction, energy use along with the economic development process, population growth and urbanization along with environmental pollution accelerate climate change. The phenomenon of climate change at the global level will have serious consequences with its economic dimensions as well as its environmental aspects. The increase in environmental disasters threatening the lives of future generations encourages countries to take measures to reduce the factors that cause climate change. Therefore, Turkey is among the countries engaged in a variety of applications to prevent climate change. The aim of this study is to investigate the relationship between climate change, financial development and energy consumption in Turkey. According to the causality test results applied with the annual data of 1960-2015, one-way relationship was found between climate change and financial development. There is also a causality relationship between domestic loans and money supply, which are included in the analysis as indicators of financial development. According to the results, Turkey, trying to achieve strong economic structure by increasing the financial development potential, should give greater attention in the implementation of environmental policies.