IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v191y2024i3d10.1007_s10551-023-05389-x.html
   My bibliography  Save this article

Economic Policy Uncertainty and Climate Change: Evidence from CO2 Emission

Author

Listed:
  • Mohammed Benlemlih

    (EM Normandie Business School)

  • Çiğdem Vural Yavaş

    (Nyenrode Business Universiteit
    Kadir Has University)

Abstract

In this paper, we study the relationship between Economic Policy Uncertainty (EPU) and carbon dioxide (CO2) emissions. Using an extensive dataset from 23 countries consisting of 6800 firm-year observations, we provide strong evidence that EPU increases firms’ CO2 emissions. Our main inference is robust when using alternative measures of CO2 emissions and EPU, alternative econometric specifications and samples, and several approaches to control for possible endogeneity. In a set of additional analyses, we first show that a board’s characteristics (i.e., board gender diversity and board independence) significantly moderate the studied relationship. Second, cross-country characteristics (i.e., government effectiveness, control of corruption, and democracy) seem important in the relationship between EPU and CO2 emissions. Our findings significantly contribute to the debate on firms’ ethical responsibility in managing climate change and CO2 emissions.

Suggested Citation

  • Mohammed Benlemlih & Çiğdem Vural Yavaş, 2024. "Economic Policy Uncertainty and Climate Change: Evidence from CO2 Emission," Journal of Business Ethics, Springer, vol. 191(3), pages 415-441, May.
    • Handle: RePEc:kap:jbuset:v:191:y:2024:i:3:d:10.1007_s10551-023-05389-x
    DOI: 10.1007/s10551-023-05389-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-023-05389-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-023-05389-x?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.

    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:kap:jbuset:v:191:y:2024:i:3:d:10.1007_s10551-023-05389-x. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.