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Exploring the impact of economic, climate, and energy policy uncertainty on the Environmental Kuznets Curve: International evidence

Cristian Barra, Pasquale Marcello Falcone and Patrizio Giganti

International Economics, 2025, vol. 182, issue C

Abstract: The academic relevance of environmental pollution and its relationship with economic growth is an acclaimed research field. However, the implications of linking these variables with economic, climate, and energy policies represent the new frontier of the debate. Among the popular theories regarding the nexus between environmental pollution and economic growth, the Environmental Kuznets Curve (EKC) is highly debated. Additionally, the economic policy implications of uncertainty play a significant role. This work aims to investigate the existence of the EKC and the impact of some uncertainty indexes on it. The investigation includes analyzing both the direct impact of newly observed variables on pollution and the moderating effect of uncertainty indexes on the primary nexus. Specifically, three types of uncertainty are examined: economic policy, climate policy, and energy-related policy. The findings reflect the EKC's persistence and the relevance of moderating effects, mainly depending on the country's categorization. This aspect, along with sample heterogeneity and factors such as the implementation of the Kyoto Protocol Agreement, is examined in the robustness section.

Keywords: Environmental Kuznets curve; Climate policy uncertainty; Economic policy uncertainty; Energy-related uncertainty (search for similar items in EconPapers)
JEL-codes: O44 P48 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inteco:v:182:y:2025:i:c:s2110701725000150

DOI: 10.1016/j.inteco.2025.100592

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