The Heterogeneity Research of the Impact of EPU on Environmental Pollution: Empirical Evidence Based on 15 Countries

Chen, Ying; Shen, Xiaoqian; Wang, Li

doi:10.3390/su13084166

Cited by 24 publications

(20 citation statements)

References 43 publications

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“…Recently, it is also found that EPU decreases the CO 2 emissions in the long-run [11]. Similarly, EPU discourages investment in R&D and renewable energy, which ultimately mitigates CO 2 emissions [12]. Regarding the literature on the relationship between GPR and environmental quality, GPR mitigates renewable energy consumption and investment in R&D. as a result, GPR leads to environmental degradation [19].…”

Section: Literature On the Impact Of Epu And Gpr On Environmental Degradationmentioning

confidence: 99%

“…There exist a few research outlets that explore the impact of EPU on environmental degradation. Regarding the relationship between EPU and environment, one strand of literature notes that EPU upsurges the environmental degradation [6][7][8][9], whereas second strand of literature reports that EPU plunges environmental degradation [10][11][12]. Besides, there exists a study which highlights that EPU does not affect environment [13].…”

Section: Introductionmentioning

confidence: 99%

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

et al. 2021

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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.

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Section: Literature On the Impact Of Epu And Gpr On Environmental Degradationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

et al. 2021

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“…This implies that higher levels of economic policy uncertainties adversely affect CO2 emissions in Iran. This results implying that policy uncertainty may decrease or delay economic production, which in turn will cause a reduction in carbon emissions (Chen et al 2021). This result, especially for countries that have fossil fuel as a natural resource, is expected.…”

Section: Estimation Resultsmentioning

confidence: 99%

“…Adams et al (2020) stated that economic policy uncertainty might increase CO2 emissions, especially in resource-rich countries, because policy uncertainty may limit innovations to reduce energy consumption and carbon emissions. On the other hand, policy uncertainty may decrease or delay economic production, which in turn will cause a reduction in carbon emissions (Chen et al 2021).…”

Section: Introductionmentioning

confidence: 99%

Policy uncertainty, economic activity, and carbon emissions: a nonlinear autoregressive distributed lag approach

Ashena

Shahpari

2022

Environ Sci Pollut Res

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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.

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“…However, the findings of these research are contradictory and diverse, depending on the methodological techniques used and the nations studied. EPU has been shown to improve environmental quality in a number of studies (Ahmed et al 2021 ; Chu and Le 2022 ; Ivanovski and Marinucci 2021 ; Liu and Zhang 2022 ; Gu et al 2021a ; Xin and Xin 2022 ; Zeng and Yue 2022 ; Chen et al 2021 ). For example, Ahmed et al ( 2021 ) reported that EPU decreases CO 2 emissions in the USA using the nonlinear autoregressive distributed lag (NARDL) technique for the period 1985–2017.…”

Section: Literature Review and Contributions Of The Studymentioning

confidence: 99%

Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

Udeagha

Muchapondwa

2022

Environ Sci Pollut Res

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South Africa, one of the emerging markets and fast-developing economies in Sub-Saharan Africa recognised for varying world’s natural assets on the international market, has recorded significant economic growth in the previous several years. However, aside from the ecological repercussions of energy generation, how economic uncertainties moderate the effects of energy intensity, renewable and non-renewable energy usage, and economic complexity on the environment has largely gone unnoticed. As a result, this paper addresses an important empirical vacuum by exploring the moderating influence of economic policy uncertainty in the environmental Kuznets curve for South Africa from 1960 to 2020. Results from the novel dynamic autoregressive distributed lag simulations framework reveal the following key findings: (i) economic policy uncertainty accelerates environmental degradation in both the short and long run; (ii) economic growth (as measured by the scale effect) increases environmental degradation, whereas the square of economic growth (as measured by the technique effect) slows it down, confirming the presence of the environmental Kuznets curve (EKC) hypothesis; (iii) environmental quality is deteriorated by energy intensity, economic complexity, non-renewable energy usage, and trade openness; (iv) the use of renewable energy and technological innovation increase environmental quality; (v) whereas the moderating effects of economic policy uncertainty on the environmental impacts of energy intensity, renewable and non-renewable energy consumption result in an increase in environmental destruction, its moderating effect on environmental implication of economic complexity plays an important role in improving environmental quality. These findings permit us to draw important policy recommendations for South Africa for improving environmental quality.

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The Heterogeneity Research of the Impact of EPU on Environmental Pollution: Empirical Evidence Based on 15 Countries

Cited by 24 publications

References 43 publications

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

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

Policy uncertainty, economic activity, and carbon emissions: a nonlinear autoregressive distributed lag approach

Investigating the moderating role of economic policy uncertainty in environmental Kuznets curve for South Africa: Evidence from the novel dynamic ARDL simulations approach

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