Financing the Clean Energy Projects in Turkey: The Roles of Domestic and Foreign Capital

In this study, it is aimed to investigate the effects of domestic and foreign capital on the financing of clean energy projects towards with the sustainable development targets of Turkey. In addition, the effects of the increasing domestic and foreign capital on environmental pollution are also compared in the study. For these purposes, the effects of stock market capitalization which is used as an indicator of domestic capital and foreign direct investment that is used as an indicator of foreign capital on clean energy use (alternative and nuclear energy) and carbon dioxide emissions are examined using with ARDL bound test for the period from 1992 to 2015. The obtained findings from the study show that increasing foreign capital increases clean energy consumption while domestic capital has no significant effect on clean energy usage. Moreover, it is found that increasing foreign capital reduces environmental pollution while increasing domestic capital has positive influence on environmental pollution