The Impact of Green Finance and Financial Globalization on Environmental Sustainability: Empirical Evidence from Türkiye

Yardımcı, Pınar | Oskay, Cansel

Green finance—including bilateral and multilateral development aid and concessional loans—has emerged as a critical tool in supporting the transition to a low-carbon economy, particularly in emerging economies. Türkiye, since the early 2000s, has increasingly relied on climate-related official development flows in alignment with its sustainability and emissions reduction targets. This study examines the impact of green finance and financial globalization on environmental sustainability in Türkiye over the period 2001–2021. It specifically tests the load capacity curve (LCC) hypothesis, which posits a non-linear (U-shaped) relationship between financial drivers and ecological outcomes. The study employs the load capacity factor (LCF) as an environmental pressure indicator and uses A...