Skip to main navigation Skip to search Skip to main content

The Impact of Monetary Policy on Environmental Degradation: A Comparative Analysis of Advanced and Emerging Economies1

Research output: Contribution to journalArticlepeer-review

Abstract

This study examines the impact of monetary policy on environmental degradation by applying the two-step system generalised method of moments (GMM) methodology and utilising panel data from 58 countries (1995-2021). Additionally, a comparative analysis of advanced and emerging economies is conducted. The findings reveal that while expansionary monetary policy significantly increases environmental degradation in emerging economies, no significant relationship is observed in advanced economies. This underscores the critical need to integrate sustainability into monetary policy frameworks. It is vital for long-term sustainable growth that central banks assess the environmental impacts of their activities, prioritise green investments, and promote green financial instruments.
Original languageEnglish
Pages (from-to)217-235
Number of pages19
JournalSosyoekonomi
Volume33
Issue number65
DOIs
Publication statusPublished - Jul 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Keywords

  • Advanced Economies
  • Emerging Economies
  • Environmental Degradation
  • Monetary Policy
  • Two-Step System GMM

Fingerprint

Dive into the research topics of 'The Impact of Monetary Policy on Environmental Degradation: A Comparative Analysis of Advanced and Emerging Economies1'. Together they form a unique fingerprint.

Cite this