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Does Economic Policy Uncertainty Affect CO 2 Emissions? Empirical Evidence from the United States

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  • Qing Wang

    (Department of Finance, Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Kefeng Xiao

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

  • Zhou Lu

    (School of Business, Tianjin University of Commerce, Tianjin 300134, China)

Abstract

This paper aims to examine the effects of economic policy uncertainty (measured by the World Uncertainty Index—WUI) on the level of CO 2 emissions in the United States for the period from 1960 to 2016. For this purpose, we consider the unit root test with structural breaks and the autoregressive-distributed lag (ARDL) model. We find that the per capita income promotes CO 2 emissions in the long run. Similarly, the WUI measures are positively associated with CO 2 emissions in the long run. Energy prices negatively affect CO 2 emissions both in the short run and the long run. Possible implications of climate change are also discussed.

Suggested Citation

  • Qing Wang & Kefeng Xiao & Zhou Lu, 2020. "Does Economic Policy Uncertainty Affect CO 2 Emissions? Empirical Evidence from the United States," Sustainability, MDPI, vol. 12(21), pages 1-11, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:21:p:9108-:d:438815
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    21. Antonios Persakis, 2024. "The impact of climate policy uncertainty on ESG performance, carbon emission intensity and firm performance: evidence from Fortune 1000 firms," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 24031-24081, September.
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