Do economic policy uncertainty and environment-related technologies help in limiting ecological footprint?

Abstract

Economic policies related to energy and the environment are found uncertain in developing economies. Renewable energy sources are gradually increasing in energy structure (ES) with the adoption of environment-related technologies (ERT). However, least attention is paid to investigating the nexus of economic policy uncertainty (EPU), ERT, ES, and ecological footprint (EF). Therefore, this study is an effort to examine the EPU, ERT, ES, and interaction of EPU and ERT on EF for BRICS economies under the umbrella of the STIRPAT model. By using the data from 1992 to 2020, findings are estimated through "cross-sectional dependence (CD test); CIPS and CADF unit root test; Westerlund's co-integration; and CS-ARDL, AMG, and CCEMG." Findings unveiled the negative role of EPU on EF. Furthermore, the role of RE and ERT is positive and substantial in decreasing the environmental degradation in BRICS. Therefore, the BRICS economies are suggested to be consistent on economic policies to catch the positive impact of ERT. Findings are robust to the policy implications.

Linkage of natural resources, economic policies, urbanization, and the environmental Kuznets curve

“…It means that energy structure is helpful to reduce ecological footprints in E7 economies. Previous studies have shown similar results (Bilal et al 2022 ; Hussain et al 2022 ).…”

“…Moreover, another challenge faced by the world is to manage uncertain economic policies for sustainable development and a clean environment. According to recent studies on economic policy uncertainty (EPU), it is a serious issue to be considered to control environmental degradation (Hussain et al 2022 ; Syed et al 2022 ). In developing countries, uncertain economic policies lead to confused investors and manufacturers about their returns.…”

Impact of urbanization, industrialization, electrification and renewable energy on the environment in BRICS: fresh evidence from novel CS-ARDL model

“…(2014) utilized the STIRPAT model to examine the Kyoto Protocol's pledges on carbon dioxide emissions and the factors that contribute to environmental degradation. According to Hussain et al. (2022) , in a study done in the BRICS economies, consistent economic policies are needed to fully realize the benefits of environmental technologies.…”

Prediction of Post-COVID-19 economic and environmental policy and recovery based on recurrent neural network and long short-term memory network

“…Darsono et al (2022) find that EPU reduces sustainable stock market returns in the long run and discourages investment activity. Further, EPU reduces investment in environmental technologies in industrial production, increasing the ecological footprint in the long run (Hussain et al 2022). At the same time, renewable energy use and R&D decrease as EPU increases (Amin andDogan 2021, Shafiullah et al 2021).…”