The role of economic policy uncertainty in the energy-environment nexus for China: Evidence from the novel dynamic simulations method

Amin A., Dogan E.

JOURNAL OF ENVIRONMENTAL MANAGEMENT, vol.292, 2021 (SCI-Expanded) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 292
  • Publication Date: 2021
  • Doi Number: 10.1016/j.jenvman.2021.112865
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, International Bibliography of Social Sciences, PASCAL, Aerospace Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, Communication Abstracts, EMBASE, Environment Index, Geobase, Greenfile, Index Islamicus, MEDLINE, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Abdullah Gül University Affiliated: Yes


Even though a great number of researches have explored the determinants of carbon emissions, the impact of economic policy uncertainty (EPU) on the environment has not been fully investigated in the energy-environment literature. Since recent studies show a strong relationship between the external environment and uncertainty, the present study for the first time in the literature aims to explore the function of EPU in the energy-environment nexus for China by using the novel bounds testing with dynamic simulations. The empirical results indicate that increases in the real income and energy intensity contribute to environmental pollution while increases in renewable energy lower the level of emissions. Besides, an increase in EPU causes an increase in the volume of carbon emissions. As EPU increases, the government's attention to implement environmental protection policies decreases, and the execution of the environment-related strategies is likely directed in an expected way. The empirical findings suggest that the government should establish consistency in economic and environmental policies to mitigate environmental pollution and thus to reach environmental sustainability.