Coupling between global climate policy uncertainty and economic policy uncertainty

Dandan Ma, Dayong Zhang, Kun Guo and Qiang Ji

Finance Research Letters, 2024, vol. 69, issue PB

Abstract: This paper aims to track global climate policy uncertainty (GCPU) and study its impact on economic policy. We develop a news-based index for GCPU spanning from 2000 to 2023, covering twelve countries across six continents. The index exhibits an upward trend after the adoption of the Paris Agreement in 2015 and spikes during major climate policy events. We examine the spillover effects from GCPU to global economic policy uncertainty (GEPU) using the copula-conditional value-at-risk approach. Our findings suggest that GCPU has significantly influenced GEPU in both upside and downside movements, with a greater effect on the upside.

Keywords: Climate policy; Uncertainty; Economic policy; Textual analysis (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:69:y:2024:i:pb:s1544612324012091

DOI: 10.1016/j.frl.2024.106180

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