Does Environmental Policy Uncertainty Hinder Investments Towards a Low-Carbon Economy?

Noailly, Joëlle; Nowzohour, Laura; Heuvel, Matthias van den

doi:10.2139/ssrn.4203052

Cited by 2 publications

(2 citation statements)

References 27 publications

(28 reference statements)

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“…Uncertainty surrounding policies as subsidies influences the investment decision as well, as shown by Hagspiel et al (2021) and Sendstad and Chronopoulos (2020) who study the effect of subsidy retraction on the firm investment decision. Noailly et al (2022) additionally show empirically that environmental policy uncertainty is associated with reduced low-carbon investments. Furthermore, recent studies look at drivers of EE adoption in addition to barriers.…”

Section: The Energy Efficiency Gapmentioning

confidence: 86%

The Energy Efficiency Gap and Barriers to Investments

Bremer

Nijs²,

Groot

2023

Preprint

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Section: The Energy Efficiency Gapmentioning

confidence: 86%

The Energy Efficiency Gap and Barriers to Investments

Bremer

Nijs²,

Groot

2023

Preprint

View full text Add to dashboard Cite

“…Since EPU significantly impacts the trajectory of environmental sustainability initiatives, adopting environmentally friendly practices and a lack of clear and consistent rules might hamper cleaner technology innovation and its adoption [19][20][21]27]. The lack of evidence in the existing literature on how EPU impacts ES provides the authors with motivations to shed light on the relevance of stable and predictable policy frameworks for encouraging sustainable practices and RE uptake by investigating the influence of policy uncertainty.…”

Section: Introductionmentioning

confidence: 99%

Comparative Analysis of the Impact of Policy Uncertainty, Agricultural Output, and Renewable Energy on Environmental Sustainability

Nan,

He,

Solangi

et al. 2023

Sustainability

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The comparative analysis of the effect of economic policy uncertainty on environmental sustainability is imperious as it can provide critical insights into the link between economic policies and environmental sustainability. Economic policy uncertainty may have different impacts in different economies. The present study provides a comparative analysis of the effect of economic policy uncertainty on environmental sustainability in developed and emerging economies. The study employs pooled ordinary least squares and panel quantile regression to analyze data from 2001 to 2019. Moreover, the study also compares the impact of economic policy uncertainty on environmental sustainability across two different econometric methods. It also compares the results across different quantiles of the distribution of variables. Moreover, the study includes the agriculture output, renewable energy consumption, and foreign direct investment in the model. The results show that economic policy uncertainty negatively and significantly impacts environmental sustainability as it increases GHG emissions. Moreover, agriculture output increases GHG emissions in developed economies at higher quantiles. Furthermore, the results also confirm the pollution haven hypothesis, while renewable energy consumption has a positive effect on environmental sustainability as it significantly reduces GHG emissions. The study stresses that governments should take measures to minimize economic policy uncertainty to improve environmental sustainability. In addition, effective policies to enhance openness in the policymaking process and offer long-term policy certainty and foster more stable investment conditions would encourage renewable energy and reduce GHG emissions.

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Does Environmental Policy Uncertainty Hinder Investments Towards a Low-Carbon Economy?

Cited by 2 publications

References 27 publications

The Energy Efficiency Gap and Barriers to Investments

The Energy Efficiency Gap and Barriers to Investments

Comparative Analysis of the Impact of Policy Uncertainty, Agricultural Output, and Renewable Energy on Environmental Sustainability

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