Climate anxiety, economic policy uncertainty, and green growth

Alishba Hania, Chien-Chiang Lee () and Farzan Yahya
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Alishba Hania: Nanchang Institute of Technology
Farzan Yahya: Nanchang Institute of Technology

Economic Change and Restructuring, 2025, vol. 58, issue 1, No 14, 34 pages

Abstract: Abstract The convergence of climate change and economic instability has sparked an unprecedented surge in climate anxiety, emerging as a critical public health challenge of current era. Our study examines the relationship between economic policy uncertainty (EPU) and climate anxiety through both symmetric and asymmetric lenses, drawing on comprehensive panel data from G7 countries spanning 1999–2022. Through the development of a novel climate anxiety index and application of advanced panel techniques, we reveal robust evidence of EPU's substantial influence on climate anxiety. Our analysis demonstrates that this relationship intensifies at higher quantiles, while environmental performance metrics serve as crucial buffers against EPU's adverse mental health impacts. The bidirectional causality between EPU and climate anxiety emphasizes the urgent need for integrated economic and environmental policies to protect vulnerable populations' mental health in an increasingly uncertain world.

Keywords: Climate anxiety; Economic policy uncertainty; Green growth; Panel quantile regression; Dynamic common-correlated effects; G7 countries (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10644-025-09854-7

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