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The Relationship Between Inflation, Human Development Index and CO2 in Selected Country Groups

Author

Listed:
  • Ufuk Alkan

    (Marmara University)

  • Canan Dağıdır Çakan

    (Marmara University)

  • Aykut Şengül

    (Marmara University)

  • Mehmet Hanifi Ateş

    (Marmara University)

Abstract

UNDP report observes that countries with a high Human Development Index (HDI) are industrialized nations. It is well-known that industrialization leads to high carbon dioxide (CO2) emissions. These countries also experience low inflation rates due to their high production volumes. In light of this information, this study aims to empirically investigate the complex relationship between inflation, HDI, and CO2 across different country groups. The study employs panel data analysis over the period from 1994 to 2021, focusing on specific subdivisions within country groups (OECD, G20, EU, developed, high-income, and low-income countries). The results reveal a linear relationship between HDI and CO2 and an inverse relationship between inflation and CO2, providing policy recommendations based on these findings.

Suggested Citation

  • Ufuk Alkan & Canan Dağıdır Çakan & Aykut Şengül & Mehmet Hanifi Ateş, 2024. "The Relationship Between Inflation, Human Development Index and CO2 in Selected Country Groups," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 39(122), pages 79-109, October.
    • Handle: RePEc:acc:malfin:v:39:y:2024:i:122:p:79-109
    DOI: https://doi.org/10.33203/mfy.1442703
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    References listed on IDEAS

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    More about this item

    Keywords

    Inflation; Carbon Emissions; Human Development Index; Panel Data Analysis;
    All these keywords.

    JEL classification:

    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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