Transition Towards Climate‐Resilient Low‐Carbon and Net‐Zero Future Pathways: Investigating the Influence of Post‐Paris Agreement and G‐7 Climate Policies on Climate Actions in G‐20 Using Quasi‐Natural Experiments

Atta Ullah, Chen Pinglu, Saba Khan and Ningyu Qian

Sustainable Development, 2025, vol. 33, issue 4, 5390-5413

Abstract: This study is driven by the pressing need to assess how the international Paris Agreement of 2015, as a policy shock, impacts climate actions in G‐20 countries, which account for most of the world's emissions. Achieving SDG‐13 (Climate Actions) requires understanding the function of the G‐7 policy. In this context, using a quasi‐natural experiment design with Multi‐year Difference‐in‐Differences (DID), fixed‐effect DID, and propensity score matching (PSM‐DID), this study examines how the Paris Agreement and G‐7 climate policies affected the climate actions (SDG‐13) of the G‐20 countries from 2002 to 2021. The findings demonstrate that the Paris Agreement of 2015 substantially benefits climate action, with treatment effects ranging from 0.278 to 0.367, at a significance level of 1%. The findings show that covariant environmental taxes help to advance the climate efforts, whereas coal rents and the use of fossil fuels impede them. International cooperation (SDG‐17) further improves outcomes. Climate change policies adopted by the G‐7 have a significant long‐term influence on other G‐20 member nations. But their efficacy has slightly changed over the time. This study focuses on providing necessary tools for the global transition towards climate‐resilient low‐carbon and net‐zero future pathways.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:33:y:2025:i:4:p:5390-5413

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