THE ROLE OF ECONOMIC POLICY UNCERTAINTY AND ENVIRONMENTAL POLICIES IN SHAPING ENVIRONMENTAL SUSTAINABILITY: EVIDENCE FROM BRICS NATIONS
DOI:
https://doi.org/10.20319/icssh.2025.138148Keywords:
Economic Policy Uncertainty, Environmental Policies, Carbon Dioxide Emissions, BRICS CountriesAbstract
The intensity of environmental pollution has contributed to an immense depletion in our ozone layer and a recession in the global economy. Factors such as uncertainties in economic policies have resulted in the changes in fiscal and monetary policies, serving as limitation for environmental sustainability. However, this study seeks to explore how economic policy uncertainty (EPU) can interact with environmental policies (EPI) to enhance environmental sustainability in BRICS countries. It employs the clustered pooled least square (PLS) and Fixed-effect (FE) models to analyze data from 2000-2022. The findings indicate that EPU increases carbon dioxide (CO2) emissions whiles EPI reduces CO2 emissions. However, integrating EPU and EPI mitigates CO2 emissions in BRICS nations. The study therefore asserts that policymakers can stabilize environmental commitment by implementing long-term, legally binding frameworks, ensuring that environmental policies remain consistent and unaffected by political or economic uncertainties.
References
Anser, M. K., Apergis, N., & Syed, Q. R. (2021). Impact of economic policy uncertainty on CO2 emissions: evidence from top ten carbon emitter countries. Environmental Science and Pollution Research, 28(23), 29369–29378.
https://doi.org/10.1007/s11356-021-12782-4
Aryal, B., Gurung, R., Camargo, A. F., Fongaro, G., Treichel, H., Mainali, B., Angove, M. J., Ngo, H. H., Guo, W., & Puadel, S. R. (2022). Nitrous oxide emission in altered nitrogen cycle and implications for climate change. Environmental Pollution, 314, 120272. https://doi.org/10.1016/j.envpol.2022.120272
Chen, X., & Chen, Z. (2021). Can China’s Environmental Regulations Effectively Reduce Pollution Emissions? International Journal of Environmental Research and Public Health, 18(9), 4658.
https://doi.org/10.3390/ijerph18094658
Danish, & Wang, Z. (2019). Does biomass energy consumption help to control environmental pollution? Evidence from BRICS countries. Science of The Total Environment, 670, 1075–1083.
https://doi.org/10.1016/j.scitotenv.2019.03.268
Farooq, U., Gillani, S., Subhani, B. H., & Shafiq, M. N. (2022). Economic policy uncertainty and environmental degradation: the moderating role of political stability. Environmental Science and Pollution Research, 30(7), 18785–18797. https://doi.org/10.1007/s11356-022-23479-7
Ghazouani, A., Jebli, M. Ben, & Shahzad, U. (2021). Impacts of environmental taxes and technologies on greenhouse gas emissions: contextual evidence from leading emitter European countries. Environmental Science and Pollution Research, 28(18), 22758–22767.
https://doi.org/10.1007/s11356-020-11911-9
Javed, A., Fuinhas, J. A., & Rapposelli, A. (2023). Asymmetric Nexus between Green Technology Innovations, Economic Policy Uncertainty, and Environmental Sustainability: Evidence from Italy. Energies, 16(8), 3557.
https://doi.org/10.3390/en16083557
Sarfraz, M., Ivascu, L., & Cioca, L.-I. (2021). Environmental Regulations and CO2 Mitigation for Sustainability: Panel Data Analysis (PMG, CCEMG) for BRICS Nations. Sustainability, 14(1), 72.
https://doi.org/10.3390/su14010072
Wang, M., Liao, G., & Li, Y. (2021). The Relationship between Environmental Regulation, Pollution and Corporate Environmental Responsibility. International Journal of Environmental Research and Public Health, 18(15), 8018.
https://doi.org/10.3390/ijerph18158018
Zakari, A., Khan, I., Tan, D., Alvarado, R., & Dagar, V. (2022). Energy efficiency and sustainable development goals (SDGs). Energy, 239, 122365.
https://doi.org/10.1016/j.energy.2021.122365
Zhou, J., Li, Y., Tian, J., & Ma, Z. (2023). Research on the Spatial Effects of Green Process Innovation, Environmental Regulation, and Precipitation on Environmental Air Pollution. Atmosphere, 14(2), 211.
Downloads
Published
How to Cite
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
