Does Economic Policy Uncertainty Affect CO 2 Emissions? Empirical Evidence from the United States

Qing Wang, Kefeng Xiao and Zhou Lu
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Qing Wang: Department of Finance, Economics and Management School, Wuhan University, Wuhan 430072, China
Kefeng Xiao: Economics and Management School, Wuhan University, Wuhan 430072, China
Zhou Lu: School of Business, Tianjin University of Commerce, Tianjin 300134, China

Sustainability, 2020, vol. 12, issue 21, 1-11

Abstract: This paper aims to examine the effects of economic policy uncertainty (measured by the World Uncertainty Index—WUI) on the level of CO 2 emissions in the United States for the period from 1960 to 2016. For this purpose, we consider the unit root test with structural breaks and the autoregressive-distributed lag (ARDL) model. We find that the per capita income promotes CO 2 emissions in the long run. Similarly, the WUI measures are positively associated with CO 2 emissions in the long run. Energy prices negatively affect CO 2 emissions both in the short run and the long run. Possible implications of climate change are also discussed.

Keywords: CO 2 emissions; economic policy uncertainty; World Uncertainty Index; ARDL model; United States (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:21:p:9108-:d:438815

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