Research Information System
6th International CEO (Communication, Economics, Organization) Social Sciences Congress, Arizona, United States Of America, 16 - 18 June 2023, pp.1026-1035
One of the most important problems of countries is climate change and one of the factors that cause these climate
conditions to worsen is carbon emissions (CO2). As climate change affects many countries, it causes the
deterioration of climate conditions in China, which is rapidly industrializing and whose economy is growing
rapidly. Therefore, the aim of this study is to examine the relationship between China's CO2 emissions in the
period 1990-2020 and climate policy uncertainty, the development of financial institutions and the development
of financial markets. For this purpose, firstly, whether the variables contain unit roots or not is tested with NgPerron and DF-GLS unit root tests, and then the long-term relationship between the variables is tested with the
Johansen Cointegration approach. In the final stage, the causality relationship between the variables is investigated
with the VECM Granger causality method. Empirical findings indicate that the variables are cointegrated at the
I(1) level and that there is a long-term relationship between CO2 emissions and climate policy uncertainty, the
development of financial institutions and the development of financial markets. The findings of causality also
suggest that there is one-way causality that extends from climate policy uncertainty, the development of financial
institutions and financial markets to CO2 emissions. As a result, the study offers many recommendations to policy
makers and financial institutions in line with these findings.