Economic policy uncertainty and carbon emissions: Do CSR committee and CSR reporting matter?

Rim Ben Abdesslem, Imed Chkir, Lamia Chourou and Hatem Rjiba

Finance Research Letters, 2025, vol. 78, issue C

Abstract: This study explores the relationship between Economic Policy Uncertainty (EPU) and corporate carbon emissions around the world. We find a significant negative association, where a 1 % increase in EPU is associated with a reduction in carbon emissions ranging from 0.14 % to 0.30 %. The results suggest that firms reduce emissions during uncertain periods, potentially to enhance their reputational capital, anticipate regulatory changes, and improve efficiency. Compared to firms without CSR committees or CSR reporting, those with such governance structures exhibit a smaller reduction in emissions during periods of uncertainty, underscoring the moderating role of corporate governance mechanisms in shaping environmental behavior.

Keywords: Carbon emissions; EPU; CSR committee; CSR reporting (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:78:y:2025:i:c:s1544612325004866

DOI: 10.1016/j.frl.2025.107223

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