Nexus between economic policy uncertainty, renewable & non-renewable energy and carbon emissions: Contextual evidence in carbon neutrality dream of USA

2021 ◽  
Author(s):  
Mohamed Sahbi Nakhli ◽  
Muhammad Shahbaz ◽  
Mehdi Ben Jebli ◽  
Shizhen Wang
Keyword(s):  
Economic Policy ◽  
Renewable Energy ◽  
Carbon Emissions ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Carbon Neutrality

scholarly journals Do Economic Policy Uncertainty and Geopolitical Risk Lead to Environmental Degradation? Evidence from Emerging Economies

2021 ◽  
Vol 13 (11) ◽  
pp. 5866
Author(s):  
Muhammad Khalid Anser ◽  
Qasim Raza Syed ◽  
Hooi Hooi Lean ◽  
Andrew Adewale Alola ◽  
Munir Ahmad
Keyword(s):  
Economic Policy ◽  
Renewable Energy ◽  
Environmental Degradation ◽  
Emerging Economies ◽  
Ecological Footprint ◽  
Policy Implications ◽  
Policy Uncertainty ◽  
Economic Policy Uncertainty ◽  
Integration Test ◽  
The Impact

Since the turn of twenty first century, economic policy uncertainty (EPU) and geopolitical risk (GPR) have escalated across the globe. These two factors have both economic and environmental impacts. However, there exists dearth of literature that expounds the impact of EPU and GPR on environmental degradation. This study, therefore, probes the impact of EPU and GPR on ecological footprint (proxy for environmental degradation) in selected emerging economies. Cross-sectional dependence test, slope heterogeneity test, Westerlund co-integration test, fully modified least ordinary least square estimator, dynamic OLS estimator, and augmented mean group estimator are employed to conduct the robust analyses. The findings reveal that EPU and non-renewable energy consumption escalate ecological footprint, whereas GPR and renewable energy plunge ecological footprint. In addition, findings from the causality test reveal both uni-directional and bi-directional causality between a few variables. Based on the findings, we deduce several policy implications to accomplish the sustainable development goals in emerging economies.

scholarly journals Policy Uncertainty, Economic Activity And Carbon Emissions: A Nonlinear Autoregressive Distributed Lag Approach

2021 ◽  
Author(s):  
Malihe Ashena ◽  
Ghazal Shahpari
Keyword(s):  
Economic Policy ◽  
Carbon Emissions ◽  
Economic Activity ◽  
Carbon Emission ◽  
Policy Uncertainty ◽  
Economic Uncertainty ◽  
Economic Policy Uncertainty ◽  
Economic Production ◽  
Uncertainty Index ◽  
Nonlinear Autoregressive

Abstract Over the last few years, economic uncertainty has become a global concern. Not only has its impact on economic activities, but there are pieces of evidence that show uncertainty can be the reason for CO2 emissions. It is also expected that the economic policy uncertainty may decrease or delay economic production, which may lead to a reduction in carbon emissions. Furthermore, uncertainty may decrease friendly environment policies and budgets, which cause increase in carbon emissions. Thus, there may be an asymmetric relationship between economic uncertainty and the amount of CO2 emissions. This study investigates the effects of economic policy uncertainty and economic activity on carbon emission applying a Nonlinear Autoregressive Distributive Lag (NARDL) cointegration approach in Iran between 1971 and 2018. Findings show that both policy uncertainty and economic growth contribute to CO2 emissions. The negative and positive shocks of GDP and uncertainty index on CO2 emissions in both the short-run and long-run are significant. It can be concluded that there is an asymmetric effect of economic production on CO2 emissions in Iran. The results of analyzing asymmetric effects of economic uncertainty show a symmetric relationship between uncertainty index and CO2 emissions. In a way that a shock in uncertainty index lowers carbon emission. To sum up, since uncertainty may affect the analysis of carbon emissions incorrectly, some environmental policies such as allocating a budget for R&D on clean energy, and environmental taxes must be implemented.

scholarly journals Impact of Economic Policy Uncertainty on Carbon Emissions: Evidence from 137 Multinational Countries

2021 ◽  
Vol 19 (1) ◽  
pp. 4
Author(s):  
Hai-Jie Wang ◽  
Yong Geng ◽  
Xi-Qiang Xia ◽  
Quan-Jing Wang
Keyword(s):  
Economic Policy ◽  
World Bank ◽  
Carbon Emissions ◽  
Policy Implications ◽  
Policy Uncertainty ◽  
International Treaties ◽  
Stirpat Model ◽  
Economic Policy Uncertainty ◽  
Cross Country ◽  
The Relationship

With growing economic policy uncertainty (EPU) and the importance of protecting the natural environment worldwide, the relationship between EPU and carbon emissions should be investigated further. However, conclusions in the existing literature on the relationship between EPU and carbon emission are inconclusive. This paper aims to examine the influence of EPU on carbon emissions according to the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model. To investigate such essential issues, we conduct GMM estimations by utilizing cross-country data covering 137 countries during the period 1970–2018, obtained from World Bank and OECD statistics. Our empirical estimations support that EPU would bring about more carbon emissions, while we conduct empirical analysis by changing the system of measurement, employing alternative estimation and constructing new samples. Our study provides substantial policy implications for government participation in international treaties on environmental protection to mitigate environmental degradation.

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