Heterogeneous effects of economic policy uncertainty and foreign direct investment on environmental quality: cross-country evidence

Pathway towards Sustainability in Selected Asian Countries: Influence of Green Investment, Technology Innovations, and Economic Growth on CO2 Emission

“…Similarly, [56] explained that the adoption of modern technology and production methods are beneficial in lowering production-based CO2 emissions, thus technology innovations in a country are expected to have an adverse influence on CO2 emissions. Finally, in agreement with the previous literature [60,61] FDI, POP, and TRD are control variables denoting foreign direct investment inflows, the population growth rate, and trade openness, respectively.…”

“…We noted that a 1% surge in FDI inflows increases the CO2 emissions by 0.18277% and 0.21761%, respectively, by both PFMOLS and PDOLS. In addition, the FDI-CO2 emissions nexus results indicates the "pollution haven" concept in the selected countries, which indicates that multinational companies, specifically those involved in high-polluting activities, would relocate their production activities to nations with more relaxed environmental laws, therefore expanding CO2 emissions [55,60]. The possible reason for the positive influence of FDI on CO2 emissions is that Asian economies have received a large amount of FDI from the last two decades since the region has begun transformation towards industrialization.…”

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

“…However, there are some gaps in the existing studies. Specifically, the conclusions are controversial (Gill et al, 2019;Shabir et al, 2021) [21,22], and while much of the literature has pointed out that EPU brings more environmentally adverse effects (Yu et al, 2021, Adedoyin andZakari, 2021) [19,23], a small number of scholars have argued that EPU does some good in reducing CO 2 emissions (Chen et al, 2021; Do gan and Güler, 2021) [24,25], and other researchers argue that there is no influence of EPU on CO 2 emissions (Abbasi and Adedoyin, 2021; Liu and Zhang, 2021) [26,27]. Additionally, most studies have utilized the EPU index given by Baker et al, (2016) [28] to measure EPU, but this index has some limitations in that it cannot reflect uncertainty related to political events and it is not calculated from a single base for different countries worldwide, which may bring about biased results (Adams et al, 2020;Atsu and Adams, 2021) [20,29].…”

Economic Policy Uncertainty, Social Development, Political Regimes and Environmental Quality

“…There exists a unidirectional causal link from EPU to carbon emission in United States, Germany and Canada, while a bidirectional causal link between carbon emissions and Environmental Performance Index (EPI) was confirmed in Italy. Similarly, Shabir et al (2021) [ 34 ] examined the impact of EPU on CO 2 emissions by utilizing the data for 24 developed countries and developing countries during 2001–2019; their results supported that EPU does some harm to environmental quality. Aside from the index of EPU developed by Baker et al (2016) [ 37 ], Adams et al (2020) [ 23 ] utilized the countries at high geopolitical risk as the sample to study the influence of EPU on CO 2 emissions, by employing the indicator of the World Uncertainty Index (WUI) provided by Ahir et al (2018) [ 32 ] to capture EPU; their results also supported that higher WUI would lead to more CO 2 emissions.…”

“…In addition, we further explore the question of whether EPU’s influence on environmental performance varies among different fundamental countries from the perspective of social development, such as the stage of economic development, economic performance, globalization, and quality of governance; answering this question can link EPU with social circumstances, as well as understand, in detail, the impact of EPU on environmental performance within specific societies (Shabir et al, 2021) [ 34 ]. Finally, aside from social indicators, we also attach importance to the moderating effect of political regimes from the perspective of democratic or autocratic regimes, as well as left- or right- wing countries; this can offer more exact results for determining the interactive effect of political regimes and EPU in environmental performance.…”