A Barometer of Climate Change: Does the US–China Tension Exacerbate Its Risks?

Chia-Ling Yao, Pai-Chin Huang, Chi-Wei Su, Oana-Ramona Lobonţ and Meng Qin

Emerging Markets Finance and Trade, 2025, vol. 61, issue 13, 4124-4137

Abstract: Exploring the roles played by US–China tensions is essential to mitigating potential risks associated with climate change on every continent. In this respect, the methodology for this research involves a comprehensive approach, including full-sample and sub-sample analyses, to investigate the complex link between the US–China Tension Index (UCTI) and the Climate Physical Risk Index (CRI). Experimental evidence demonstrates that UCTI exerts both a facilitating and an inhibitory effect on CRI. The positive sign suggests that high tensions between the US and China heighten climate risks in specific circumstances. On the other hand, the negative effect of the interactive term reveals that even at lower levels of tension, the relentless pursuit of industrialization and urbanization heightens climate-related risks. Conversely, CRI exerts positive and negative effects on UCTI, where climate risks exacerbate the US–China tensions during Trump’s election and early presidency. However, post-COVID-19, these risks could foster greater cooperation between the two nations. Amid escalating uncertainties in US–China relations and surging climate risks, this research formulates targeted policy suggestions designed to alleviate tensions between the US and China and effectively address the accompanying climate risks.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2025.2501231 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:61:y:2025:i:13:p:4124-4137

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2025.2501231

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().