This research attempts to examine the relationship between renewable and non-renewable electricity consumption, carbon dioxide (CO2) emissions and economic policy uncertainty for the United States. ...For empirical analysis, the study employs monthly data for the period of 1985M1 to 2020M12 and used Bootstrap Rolling approach. The empirical findings revealed that, for full sample Granger causality test, there is a unidirectional causality running from electricity consumption to economic policy uncertainty and bidirectional causality between CO2 emissions and economic policy uncertainty. The estimated parameters are statistically unstable for three models. Overall, the conclusion of study supports the sustainable development goals (SDGs: 7, 10, 13) of the United States. The study argues that policymakers and political leadership of US should be aware of climate change consequences in order to fulfill carbon neutrality target and should develop economic policies accordingly in-line with energy security, clean and greener energy for all and sustainable cleaner production objectives. Further, the uncertainty issues should be considered while designing the environmental regulations.
Undoubtedly, energy is indispensable to attain economic development; however, it also generates CO2 emissions, which are the dominant contributor to environmental deterioration and climate change. In ...this regard, clean energy can help to achieve both sustainable development and environmental sustainability since it comprises non-carbohydrate energy sources that do not or seldom generate emissions. Against this backdrop, this work considers economic policy uncertainty (EPU) and probes the impact of clean energy consumption on CO2 emissions in the third largest European economy France from 1987 to 2019 controlling urbanization and economic growth. Using the STIRPAT framework, the study employed the novel Augmented ARDL method that overcomes the limitations of the ARDL methods. The outcomes disclosed strong evidence of cointegration. The long-run analysis revealed that clean energy consumption does not contribute to emissions reduction in the long-run. However, EPU poses a threat to environmental sustainability by augmenting emissions levels. Economic growth boosts CO2 emissions, while urbanization is conducive to environmental quality supporting ecological modernization theory. The study detected causality from EPU to economic growth and emissions. Finally, based on the study outcomes, a policy framework is suggested to address the objectives of Sustainable Development Goal (SDG) 7 and 13.
•Estimated effects of clean energy and EPU on emissions using augmented ARDL method.•Findings indicate cointegration in the model.•EPU increases CO2 emissions.•Economic growth augments emissions while urbanization reduces emissions.•Clean energy consumption does not significantly contribute to CO2 reduction.
This article aims to evaluate the impact of economic policy uncertainty (EPU) on the STOXX Europe 600 Travel & Leisure Price Index by utilizing a monthly data set for 20 years through 1997–2016. It ...is found that both the European and the global EPU have significant negative effects on the stock returns of travel and leisure companies. We demonstrate the significantly superior forecasting power of EPU measures on tourism and leisure stock returns, relative to a rather weak forecasting power of various macroeconomic variables.
We investigate the extent to which international economic policy uncertainty (EPU) impacts analysts' earnings forecasts. Using a sample of Australian firms, we demonstrate that EPU is positively ...associated with the size of forecast errors and the extent of forecast dispersion. Consistent with Australia being a relatively small but open economy, we show that this EPU effect extends beyond domestic EPU to include global and country-specific EPU, most notably Chinese and US EPU. The effect of international EPU is stronger for short-term forecasts, and for firms with higher growth prospects and profitability. However, the effect of Australian EPU is more pronounced for longer horizon forecasts and for firms in the resources and mining industries, and those with lower growth and profitability. Our results are consistent with heightened international EPU negatively impacting firms' information environment, with increased variation in market participants' beliefs.
•We examine the impact of economic policy uncertainty (EPU) on earnings forecasts for ASX firms.•EPU increases forecast errors and dispersion, including foreign EPU.•A stronger association is found in the mining industry and at longer forecast horizons.•Increased EPU correlates with a decline in firms' information quality.
This paper reviews the literature on the impacts of uncertainty on various aspects of different economies and highlights the need for research to be carried out in the Vietnamese context. The ...findings of notable theoretical works suggest that high levels of uncertainty can have significant temporary impacts on economic outcomes, including a decrease in total output, employment, and productivity growth. We summarize the effects of uncertainty on firm behavior, bank behavior, and the financial market, factors that affect the economy, starting with the US context. We continue to examine global studies on the international economy and discuss research on the Asian economy, where we find some inconsistent results and discover new insights on the impact of uncertainty on the economy, revealing a need for continued research in each unique country setting. Given the limited evidence of the impact of uncertainty in the Vietnamese context, we highlight the value of further local research, recommend potential areas for future research, summarize the existing measures of uncertainty index, and suggest the construction of a new uncertainty index for Vietnam.
This paper examines the effects of economic policy uncertainty (EPU) on corporate innovation in China from 2000 to 2017. The monthly EPU index for China, developed by Huang et al. (2019), is applied ...as the measurement of EPU. We find that EPU is positively correlated with corporate innovation in general. We further conclude that in the low EPU period before 2008, EPU induced more innovation activity, but it decreased corporate innovation in the higher EPU period after 2008. Moreover, EPU has a stronger positive effect on state-owned enterprises, lower cash flow companies and companies with fewer financial constraints. This shows that EPU affects corporate innovation mainly through cash holdings and revenue growth rate. Finally, we use different corporate innovation indicators, the US EPU index and a different estimation method for endogeneity and robustness checks. Our results shed light on the relationship between economic policy environment and corporate innovation in China as an emerging economy.
•The empirical evidence proves the negative correlation between economic policy uncertainty and Chinese enterprise risk taking, which complements the relevant literature.•Financing constraints level ...in the enterprise is an essential factor adjusting the effect of EPU on corporate risk-taking.
Using the firm-level data from China over the time period 2007-2018, we investigate how EPU affect the corporate risk-taking. Our empirical results show that EPU can significantly reduce the corporate risk-taking. However, such significant evidence mainly exists on the non-state-owned firms. Moreover, financing constraints level in the enterprise is an essential factor adjusting the effect of EPU on corporate risk-taking, and we find that firms with financing constraints become risk aversion in facing with EPU shocks. The conclusion of this study provides theoretical basis and practical reference for enterprises to make better decisions on high-risk and high-return investment projects.
The study explores the association between capital investments (CI), Economic Policy Uncertainty (EPU) and firm characteristics for 420 hospitality firms in India. Utilising the dynamic panel data ...approach, it addresses two main questions: How are current and past investments in CI influenced by current and past global and domestic EPU after controlling for different firm characteristics? Secondly, it considers the moderating effect of EPU and liquidity on CI in sampled firms. The findings of the study demonstrate that past domestic EPU, liquidity, profitability, sales growth and leverage positively impact CI. Whereas current global EPU, current domestic EPU, past global EPU, age and size negatively affect CI. For moderating effect of EPU and liquidity, it was noted that negative impact of EPU on CI was less pronounced for firms displaying greater liquidity. Overall, the study finds evidence of global EPU being more persistent and having a long-term negative effect on CI. The findings would be of significant use to policymakers and the hospitality industry. The policymakers may focus on improving liquidity during policy uncertainty to boost CI.
•How firm characteristics, current and past economic policy uncertainty impact capital investments?•Past domestic EPU, liquidity, profitability, sales growth and leverage have positive impact on CI for hospitality firms.•Current global EPU, current domestic EPU, past global EPU, age and size negatively affect CI.•Moderation of EPU and liquidity reflected negative impact of EPU on CI, was less pronounced for higher liquidity firms.•We find evidence of global EPU shocks persistent and having long-term impact on CI of Indian hospitality firms.
•We examine the prediction power of the EPU on the Bitcoin returns.•The EPU has a predictive power on the Bitcoin returns.•The negative response of the Bitcoin returns to the positive change in the ...EPU.•The effect is positive and significant at both lower and higher quantiles.•Bitcoin has a hedging capability against the uncertainty.
This paper analyzes the prediction power of the economic policy uncertainty (EPU) index on the daily Bitcoin returns. Using the Bayesian Graphical Structural Vector Autoregressive model as well as the Ordinary Least Squares and the Quantile-on-Quantile Regression estimations, the paper finds that the EPU has a predictive power on Bitcoin returns. Fundamentally, Bitcoin returns are negatively associated with the EPU. However, the effect is positive and significant at both lower and higher quantiles of Bitcoin returns and the EPU. In the light of these findings, the paper concludes that Bitcoin can serve as a hedging tool against uncertainty.
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