Insurance Market Development, Energy Consumption, and Turkey’s CO 2 Emissions. New Perspectives from a Bootstrap ARDL Test

Abdulsalam Altarhouni, Danbala Danju and Ahmed Samour
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Abdulsalam Altarhouni: Department of Business Administration, Faculty of Economics and Administrative Sciences, Cyprus International University, TRNC, 10 Mersin, Lefkosa 99040, Turkey
Danbala Danju: Accounting and Finance Department, Faculty of Economics and Administrative Sciences, Cyprus International University, TRNC, 10 Mersin, Lefkosa 99040, Turkey
Ahmed Samour: Banking and Finance Department, Faculty of Economics and Administrative Sciences, Near East University, TRNC, 10 Mersin, Lefkosa 99040, Turkey

Energies, 2021, vol. 14, issue 23, 1-13

Abstract: Many empirical studies have tested the linkage among CO 2 emissions, economic growth, and consumption of energy; however, most have not tested the possible influence of insurance market development on their frameworks. This research aims to provide new perspectives on the empirical literature by exploring the role of insurance market development on environmental degradation. The study utilizes a new technique of the bootstrap Autoregressive Distributed Lag (ARDL) test as introduced by (McNown et al., 2018). The ARDL testing approach is utilized to explore the short and long linkage between the examined variables. Furthermore, the research utilized the Granger causality to explore the of causality linkage among the selected variables. The findings illustrate that economic growth and consumption of nonrenewable energy have positive influence on CO 2 emissions. Furthermore, the findings illustrate that the insurance market development has a positive influence on the levels of Turkey’s carbon emissions; this finding is also confirmed through the economic growth channel. The outcomes of the current study suggested that the Turkish policy makers should make strategies and policies to ensure the sustainable development of insurance markets, to reduce environmental degradation by supporting the projects, and to invest in clean energy sources.

Keywords: insurance market development; energy; CO 2 emission; bootstrap ARDL; Turkey (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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