IDEAS home Printed from https://ideas.repec.org/a/eme/ijoemp/ijoem-07-2021-1044.html
   My bibliography  Save this article

The impacts of economic policy uncertainties on carbon dioxide emissions of emerging and low-income developing countries: the moderating role of institutional quality

Author

Listed:
  • Dinkneh Gebre Borojo
  • Jiang Yushi
  • Miao Miao

Abstract

Purpose - This study is aimed to examine the effects of the economic policy uncertainty (EPU) on carbon dioxide (CO2) emissions. It further aimed to investigate the moderating role of institutional quality on the impacts of EPU on CO2emissions. Design/methodology/approach - The authors apply the two-step system-generalized method of moments (GMM) for 112 emerging economies and low-income developing countries (hereafter, developing countries) for the period 2000–2019. Findings - The findings reveal that the effects of EPU on CO2emissions are positive. Specifically, a percent increase in EPU results in a 0.047% increase in CO2emissions in developing countries. However, the effects of institutional quality on CO2emissions are negative, certifying that strong institutional quality reduces emissions. Also, the results confirm that the positive effect of EPU on CO2emissions is weaker in countries with relatively strong institutional quality. Practical implications - Policymakers should be more vigilant while designing and implementing economic policies. Also, the government should support firms investing in environment-friendly innovations during high EPU. Besides, developing countries should improve institutional quality to mitigate the effect of EPU on CO2emissions. Originality/value - This study is the first in its kind to examine the impacts of EPU on CO2emissions in developing countries. It also provides a different viewpoint on the EPU–CO2relationship and reinterprets it through the moderating role of institutional quality.

Suggested Citation

  • Dinkneh Gebre Borojo & Jiang Yushi & Miao Miao, 2022. "The impacts of economic policy uncertainties on carbon dioxide emissions of emerging and low-income developing countries: the moderating role of institutional quality," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 18(11), pages 5408-5431, March.
    • Handle: RePEc:eme:ijoemp:ijoem-07-2021-1044
    DOI: 10.1108/IJOEM-07-2021-1044
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJOEM-07-2021-1044/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJOEM-07-2021-1044/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJOEM-07-2021-1044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Barra, Cristian & Falcone, Pasquale Marcello, 2024. "Environmental performance of countries. Examining the effect of diverse institutional factors in a metafrontier approach," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    2. Dinkneh Gebre Borojo & Jiang Yushi & Miao Miao & Luo Xiao, 2024. "The impacts of economic policy uncertainty, energy consumption, sustainable innovation, and quality of governance on green growth in emerging economies," Energy & Environment, , vol. 35(7), pages 3647-3672, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijoemp:ijoem-07-2021-1044. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.