Economic policy uncertainty, energy consumption and carbon emissions in G7 countries: evidence from a panel Granger causality analysis

Pirgaip, Burak; Dinçergök, Burcu

doi:10.1007/s11356-020-08642-2

Cited by 144 publications

(104 citation statements)

References 124 publications

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“…A 1% increase of uncertainty would increase emissions 0.3326% in China when other variables remain constant. The estimate results conform to both our expectations and the findings of previous studies (Adams et al 2020, Pirgaip andDincergok 2020). They argued that EPU has adverse effects on emission reduction.…”

Section: Resultssupporting

confidence: 92%

“…Based on US sector data, Jiang et al (2019) implement a novel parametric test of Granger causality to assess the impact of EPU on CO2 emissions and found that there is a Granger-causality running from the US EPU to carbon emissions. Pirgaip and Dincergok (2020) employ a bootstrap panel Granger causality test to investigate the causal relationship between EPU and energy consumption and CO2 emissions in G7 countries. They argued that EPU has adverse effects on energy saving and emission reduction.…”

Section: Introductionmentioning

confidence: 99%

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How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

Liu

Zhang

2021

Preprint

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More recently, the COVID-19 pandemic outbreak has created massive economic policy uncertainty (EPU). EPU and its economic fallout have been a hot topic of study, however, the impact of EPU on CO2 emissions has been seldom addressed to date. This paper investigates the direct impact of the EPU on CO2 emissions and indirect effect via the environmental regulation at the national and regional levels using the panel data model and provincial panel data from 2003 to 2017 in China. The empirical results show that the central region is the most special one, which all explanatory variables except energy consumption are all non-significant even at the 10% level. For other samples, there is a significant positive correlation between EPU and CO2 emissions, whether in the national or regional level. Additionally, environmental regulation alone can achieve the purpose of curtailing carbon emissions. However, when the EPU is taken into consideration, environmental regulation exerts a significantly positive effect on CO2 emissions, leading to unintended increase in emissions. Moreover, the Environmental Kuznets Curve (EKC) hypothesis was confirmed in the national and eastern samples, while CO2 emissions increase monotonically as economic level grows for western datasets. Based on the overall findings, some policy implications were put forward.

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Section: Resultssupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

Liu

Zhang

2021

Preprint

View full text Add to dashboard Cite

show abstract

“…Moreover, the ndings from the current study are in line with the conclusion of and Pirgaip and Dinçergök (2020), which report that economic policy uncertainty effects carbon emissions.…”

Section: Resultssupporting

confidence: 91%

“…The study also reports that EPU escalates carbon emissions. Moreover, Pirgaip and Dinçergök (2020) investigate the causal relationship among EPU, energy consumption, and carbon emissions. The ndings of the study reveal that EPU is also responsible for environmental degradation, as EPU increases carbon emissions.…”

Section: Introductionmentioning

confidence: 99%

Impact of Monetary Policy Uncertainty and Fiscal Policy Uncertainty on CO2 Emissions in the Us

Anser

Syed

Khalid

et al. 2020

Preprint

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Nowadays, environmental degradation is perceived as one of the serious concerns across the globe. One of the prime reasons behind environmental degradation is CO2 emissions. Therefore, researchers are actively putting their efforts to explore the determinants of CO2 emissions to mitigate CO2 emissions. On this basis, the present study contributes to the existing literature by investigating the impact of monetary policy uncertainty (MPU) and fiscal policy uncertainty (FPU) on CO2 emissions (environmental degradation). The current study employs ARDL methodology and uses annual data ranging from 1985 to 2019 for US. The results from the ARDL model report that there is an existence of long-run relationship among the variables. Moreover, MPU escalates the carbon emissions in both short-run and long-run. This implies that increase in MPU is responsible for rise in environmental degradation. On the contrary, FPU plunges the carbon emissions in both short- and long-run. This indicates that increase in FPU decreases the environmental degradation. Findings from the current study propose that policy makers should introduce reforms and launch policies to shrink MPU. Next, this study proposes that rule should be adopted as monetary policy making framework in lieu of discretion. Furthermore, the current study recommends that FPU should not be utilized as a tool to mitigate environmental degradation, because FPU has severe economic impacts.

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“…Based on US sector data, Jiang et al ( 2019 ) implement a novel parametric test of Granger causality to assess the impact of EPU on CO 2 emissions and found a Granger causality running from the US EPU to CO 2 emissions. Pirgaip and Dincergok ( 2020 ) employ a bootstrap panel Granger causality test to investigate the causal relationship between EPU and energy consumption and CO 2 emissions in G7 countries. They argued that EPU has adverse effects on energy saving and emission reduction.…”

Section: Introductionmentioning

confidence: 99%

How does economic policy uncertainty affect CO2 emissions? A regional analysis in China

Liu

Zhang

2021

Environ Sci Pollut Res

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More recently, the COVID-19 pandemic outbreak has created massive economic policy uncertainty (EPU). EPU and its economic fallout have been a hot topic of study; however, the impact of EPU on CO 2 emissions has been seldom addressed to date. This paper investigates the effects of the EPU on CO 2 emissions. It elucidates the role of EPU in moderating the environmental regulation-CO 2 emissions nexus at the national and regional levels using the panel data model and provincial panel data from 2003 to 2017 in China. The main empirical results are as follows. The EPU has a negative impact on carbon emissions; however, this relationship is non-significant even at the 10% level in the central and western region datasets. Environmental regulation positively increases the CO 2 emissions implying that the green paradox occurs in the whole and western regions datasets. From the perspective of the moderating effect of uncertainty, EPU exerts a positive impact upon the environmental regulation-CO 2 emissions nexus in the whole and western region datasets. The moderating effect is not significant in the eastern and central regions. The results demonstrate that the re-examination of the EKC hypothesis is inconclusive. Kuznets relationship between economic growth and CO 2 emissions for the national, eastern, and central samples was confirmed. In contrast, CO 2 emissions monotonically rise as GDP grows for western datasets. Based on the overall findings, some policy implications were put forward. We recommend that the local government should consider EPU to improve the institutional environment. Further, different regions should implement various environmental policies according to regional conditions maximizing the emission reduction potential.

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Economic policy uncertainty, energy consumption and carbon emissions in G7 countries: evidence from a panel Granger causality analysis

Cited by 144 publications

References 124 publications

How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

Impact of Monetary Policy Uncertainty and Fiscal Policy Uncertainty on CO2 Emissions in the Us

How does economic policy uncertainty affect CO2 emissions? A regional analysis in China

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Economic policy uncertainty, energy consumption and carbon emissions in G7 countries: evidence from a panel Granger causality analysis

Cited by 144 publications

References 124 publications

How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

How Does Economic Policy Uncertainty Affect CO2 Emissions? A Regional Analysis in China

Impact of Monetary Policy Uncertainty and Fiscal Policy Uncertainty on CO2&nbsp;Emissions in the Us

How does economic policy uncertainty affect CO2 emissions? A regional analysis in China

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Impact of Monetary Policy Uncertainty and Fiscal Policy Uncertainty on CO2 Emissions in the Us