The Impact of Climate Change on Financial Performance of the Electricity Industry: The Case of Türkiye

Çağdaş Gündüz

Journal of Research in Economics, Politics & Finance, 2025, vol. 10, issue 1, 92-106

Abstract: The world is encountering increasingly frequent and intense extreme weather events, driven by climate change. There is a strong scientific consensus that warns of an existential threat if greenhouse gas (GHG) emissions are not dramatically reduced and global temperatures kept under control soon. In this context, alternative energy technologies have become essential, as they can generate energy without adding to GHG emissions. Türkiye’s electricity energy industry, as a core component of the country’s economic stability and energy security, plays a major role in adapting to climate change. This study specifically focuses on listed electricity energy firms in Türkiye over the period from 2008 to 2022, investigating how climate change impacts their financial performance using panel data methodology. The empirical findings show that climate change has a significant and positive influence on financial outcomes, suggesting that adapting to climate pressures can benefit the industry financially. As a result, it is essential for the electricity power industry to incorporate climate-related strategies into their corporate agendas. However, technological innovations will mean little without large-scale public action, where local and national governments work together with international organizations and nations.

Keywords: Securities Markets; Financial Ratios; Climate Change; Electricity Industry (search for similar items in EconPapers)
JEL-codes: G10 G32 L94 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ahs:journl:v:10:y:2025:i:1:p:92-106

DOI: 10.30784/epfad.1588558

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