Nexus of economic policy uncertainty, economic expansion and clean energy consumption and their role in carbon neutrality of emerging economies

Abstract

Energy is unquestionably necessary for economic progress, but it also results in carbon emissions, which are the leading cause of environmental deterioration and climate change. From this perspective, clean energy can contribute to both sustainable development and ecological sustainability, as it consists of non‐carbohydrate energy sources that do not or rarely emit greenhouse gases. In this context, this paper investigates economic policy uncertainty (EPU), economic expansion (EE) and clean energy consumption (EC) on carbon dioxide (CO2) emissions in Russia from 1995 to 2021. The autoregressive distributed lag (ARDL) model was used to illustrate the interdependence of factors. The error correction model (ECM) is also used to check the relationship among the study's desired factors. The long‐term investigation found that EPU harms the environment by increasing emission levels. The economic expansion increases CO2 emissions and reduces the environmental quality, supporting the ecological modernization argument. The consumption of clean energy negatively impacts CO2 emission; hence its higher amount reduces the carbon. Thus, the study found a causal relationship between EPU, EC, EE and CO2 emissions. Based on the study's findings, a policy framework is proposed to address the sustainable development goals and environmental quality. Adding the other variables like environmental regulations can be taken as future direction.

Can financial innovation and environmental policy curb transport‐based CO2 emissions? An advanced panel analysis

“…For example, Zhang and Zheng (2023) and Ahmed et al (2022) found that ETAXs curb CO 2 E. Moreover, Kirikkaleli, Karmoh, et al (2023) discovered that ETAXs mitigate CO 2 E in Japan by promoting alternative energy. Fremstad and Paul (2019) and Wei et al (2023) also exposed that energy tax mitigates environmental CO 2 E and reduces energy consumption. Guo et al (2019) and Wei et al (2023) also found that carbon tax mitigates environmental crises.…”

“…Fremstad and Paul (2019) and Wei et al (2023) also exposed that energy tax mitigates environmental CO 2 E and reduces energy consumption. Guo et al (2019) and Wei et al (2023) also found that carbon tax mitigates environmental crises. Using the quantile method, Zheng and Wang (2023) found that energy tax reduces energy usage in the lower energy consumption European regions; however, at higher quantile, energy‐related tax cannot significantly mitigate energy use.…”

Nexus of geoenvironment, resource management and regional sustainable development: Introduction

“…According to Lin et al (2023), geopolitical risk (GPR) is a major hurdle in promoting sustainable development projects, green investments and global stability and arises due to the interaction between nations and regions. GPR causes uncertain economic policies, which, according to Wei et al (2023), discourage businesses from investing in clean technologies and capitalize on traditional fossil fuels, resulting in increased carbon emissions and environmental challenges. Thus, GPR and geosustainability are intertwined.…”

“…Another element proposed by multiple papers (Belgacem et al, 2023;Lin et al, 2023;Ma, 2023;Najam, 2023;Wei et al, 2023) in this special issue was promotion and capitalization of renewable or clean energy, which comes from resources that can be regenerated naturally and have little to no impact on the natural environment. Belgacem et al (2023) and Ma (2023) highlighted the importance of the transition of clean energy for sustainable development and explained how different factors, such as environmental regulations, stakeholders' awareness, R&D, etc.…”

“…Likewise, Wei et al (2023) wileyonlinelibrary.com/journal/gj comparing it with conventional economic growth and mentioned that it could reduce the environmental burden and solve the deterioration of the environment and excessive use of the natural resources issue.…”