The Impact of World Uncertainty, Environmental Policy Stringency, and Technological Innovation on Environmental Sustainability: Evidence from High-Income Countries

MotazBellah Abdalmuiz Alatrash (), Murad Abdurahman Bein and Ahmed Samour
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MotazBellah Abdalmuiz Alatrash: Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey
Murad Abdurahman Bein: Department of Accounting and Finance, Cyprus International University, Northern Cyprus, Mersin 10, Lefkosa 99040, Turkey
Ahmed Samour: Accounting Department, Dhofar University, Salalah 211, Oman

Sustainability, 2025, vol. 17, issue 3, 1-21

Abstract: Industrialization and economic growth in high-income countries have considerably increased consumption-based CO 2 emissions (CCO 2 ), adversely affecting environmental sustainability and contributing to climate change. This study assesses the impacts of Environmental Policy Stringency (EPS), World Uncertainty (WU), and Technological Innovation (TI) on environmental sustainability, aiming to guide the development of balanced policies that foster growth. Utilizing panel data from 1990 to 2021 across high-income countries, we employed the Method of Moments Quantile Regression (MMQR) to capture the varying effects of these factors at different levels of CCO 2 emissions. Our findings reveal that WU consistently and significantly reduces CCO 2 emissions across all quantiles, while the effects of EPS are minimal and largely insignificant. Similarly, TI demonstrates a weak and statistically non-significant impact, indicating that technological advancements alone are insufficient for meaningful improvements in environmental sustainability. Importantly, renewable energy consumption (REC) significantly lowers CCO 2 emissions, while economic growth (GDP) has a strong tendency to increase emissions, particularly at lower quantiles. These insights highlight the necessity for high-income countries to adopt comprehensive fiscal and environmental policies to mitigate emissions and enhance sustainability, with a focus on prioritizing renewable energy, encouraging innovation, and strengthening policy measures to achieve long-term ecological objectives.

Keywords: world uncertainty; environmental policy stringency; technological innovation; sustainability; high-income countries; MMQR (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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