Environmental degradation, inflation, and unemployment are unquestionably among the current global issues. However, there has not been an in-depth investigation of how unemployment and inflation rates impact environmental quality. This study uses the Panel NARDL model methodology to investigate how the environment (proxied by CO2 emissions) reacts to asymmetric shocks in inflation and unemployment rates. In addition to determining whether the environmental Phillips curve (EPC) hypothesis holds true in the context of African OPEC countries over the period 1990 to 2019. The study presents three interesting findings. First, CO2 emissions are adversely associated with unemployment and inflation rates, meaning that protecting a healthy environment would have to come at the expense of two undesirable outcomes: losing employment and a decline in purchasing power. Second, the asymmetry analysis demonstrates that both negative unemployment and positive inflation shocks have a larger effect on CO2 emissions than the opposite scenario. Finally, long-term evidence exists to support the presence of the EPC in these countries.
Oil prices and uncertainties have a direct impact on producers, exporters, governments, and consumers. Therefore, this study investigates the relationship between oil prices, uncertainty, and trade in Algeria from 1990Q1 to 2020Q4. This study primarily built two models: the first model examines how oil prices affect uncertainty and the second model examines how oil prices and uncertainty affect trade. To achieve the objective of the study we applied a novel multiple threshold nonlinear autoregressive distributed lag (MTNARDL) model. The findings confirm that small shocks in oil prices have a negative effect on uncertainty. While medium and large shocks in oil prices increase exports and imports. Finally, we discover that uncertainty has no significant effect on exports, while medium and large shocks in uncertainty reduce imports. Overall, the findings support the existence of an asymmetric relationship between oil prices, uncertainty, and trade. The decision-makers should consider preparing for remedial reforms and a peaceful transition from a mono-export to a diversified economy.
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