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Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint

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  • Korhan K. Gokmenoglu
  • Nigar Taspinar
  • Mohammad Mafizur Rahman

Abstract

This study investigates the long run equilibrium relationship among military expenditure, financial development, energy use, economic growth and environmental degradation in Turkey for the period of 1960–2014. Ecological footprint and carbon dioxide emissions are used as separate proxies for environmental degradation. Fully modified ordinary least squares (FMOLS) estimator results suggest that military expenditure, energy use and economic growth increase the environmental degradation while financial development improves the environmental quality in Turkey. Toda Yamamoto (1995) causality test results reveal that there is a unidirectional causality running from military expenditure to CO2 emissions and ecological footprint; and a bidirectional causality between military expenditure and economic growth. The findings of the study confirm the existence of destruction theory for the case of Turkey.

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  • Korhan K. Gokmenoglu & Nigar Taspinar & Mohammad Mafizur Rahman, 2021. "Military expenditure, financial development and environmental degradation in Turkey: A comparison of CO2 emissions and ecological footprint," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(1), pages 986-997, January.
    • Handle: RePEc:wly:ijfiec:v:26:y:2021:i:1:p:986-997
    DOI: 10.1002/ijfe.1831
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    4. Firat Emir & Selin Karlilar, 2023. "Application of RALS cointegration test assessing the role of natural resources and hydropower energy on ecological footprint in emerging economy," Energy & Environment, , vol. 34(4), pages 764-779, June.
    5. Pata, Ugur Korkut & Destek, Mehmet Akif & Manga, Muge & Cengiz, Orhan, 2022. "Militarization of NATO Countries Sparks Climate Change? Investigating the Moderating Role of Technological Progress and Financial Development," MPRA Paper 117567, University Library of Munich, Germany.
    6. Saba, Charles Shaaba, 2023. "Nexus between CO2 emissions, renewable energy consumption, militarisation, and economic growth in South Africa: Evidence from using novel dynamic ARDL simulations," Renewable Energy, Elsevier, vol. 205(C), pages 349-365.
    7. Chinazaekpere Nwani & Ekpeno L. Effiong & Sunday Ituma Okpoto & Ikechukwu Kingsley Okere, 2021. "Breaking the carbon curse: The role of financial development in facilitating low‐carbon and sustainable development in Algeria," African Development Review, African Development Bank, vol. 33(2), pages 300-315, June.
    8. Olcay Çolak & Sevilay Ece Gümüş Özuyar & Ömer Faruk Bölükbaşı, 2022. "Asymmetric Effects of the Defense Burden on Environmental Degradation: Evidence from NATO Countries," Sustainability, MDPI, vol. 15(1), pages 1-17, December.

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