Do economic policy uncertainty and geopolitical risk surge CO2 emissions? New insights from panel quantile regression approach

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Syed Q. R., Bhowmik R., Adedoyin F. F., Alola A. A., Khalid N.

Environmental Science and Pollution Research, cilt.29, sa.19, ss.27845-27861, 2022 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 29 Sayı: 19
  • Basım Tarihi: 2022
  • Doi Numarası: 10.1007/s11356-021-17707-9
  • Dergi Adı: Environmental Science and Pollution Research
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, IBZ Online, ABI/INFORM, Aerospace Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, EMBASE, Environment Index, Geobase, MEDLINE, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Sayfa Sayıları: ss.27845-27861
  • Anahtar Kelimeler: BRICST countries, Economic policy uncertainty, Geopolitical risk, Non-renewable energy, Panel quantile regression, Renewable energy
  • İstanbul Gelişim Üniversitesi Adresli: Evet

Özet

© 2021, The Author(s), under exclusive licence to Springer-Verlag GmbH Germany, part of Springer Nature.In recent times, economic policy uncertainty (EPU) and geopolitical risk (GPR) are increasing significantly where the economy and environment are affected by these factors. Therefore, the goal of this paper is to investigate whether EPU and GPR impede CO2 emissions in BRICST countries. We employ second-generation panel data methods, AMG and CCEMG estimator, and panel quantile regression model. The conclusions document that most of the variables are integrated at I (1), and there exists co-integration among considered variables of the study. Moreover, we note that EPU and GPR have a heterogeneous effect on CO2 emissions across different quantiles. EPU adversely affects CO2 emissions at lower and middle quantiles, while it surges the CO2 emissions at higher quantiles. On the contrary, geopolitical risk surges CO2 emissions at lower quartiles, and it plunges CO2 emissions at middle and higher quantiles. Furthermore, GDP per capita, renewable energy, non-renewable energy, and urbanization also have a heterogeneous impact on CO2 emissions in the conditional distribution of CO2 emissions. Based on the results, we discuss the policy direction.