Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations

Type of the article: Research Article AbstractThis study aims to examine the impact of technological innovation on the carbon emissions of the G20 economies while accounting for the moderating role of economic policy uncertainty. To analyze the relationship between emissions and technological innov...

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Main Authors: Dharmendra Singh, Muhammad Naeem, Shikha Daga, Umar Ahmed
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2025-07-01
Series:Environmental Economics
Subjects:
Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22599/EE_2025_03_Singh.pdf
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author Dharmendra Singh
Muhammad Naeem
Shikha Daga
Umar Ahmed
author_facet Dharmendra Singh
Muhammad Naeem
Shikha Daga
Umar Ahmed
author_sort Dharmendra Singh
collection DOAJ
description Type of the article: Research Article AbstractThis study aims to examine the impact of technological innovation on the carbon emissions of the G20 economies while accounting for the moderating role of economic policy uncertainty. To analyze the relationship between emissions and technological innovation in the presence of economic vulnerabilities, the study used the annual data from 2000 to 2023. Panel and quantile regression are used to test the heterogeneous relationship. The results reveal that research and development expenditure (R&D) has a positive and statistically significant impact on emissions at certain quantiles, suggesting that innovation alone may not uniformly contribute to emission reductions. Economic policy uncertainty is documented to have a heterogeneous relationship with emissions, wherein it reduces emissions at lower quantiles, with a positive relationship exhibited at higher quantiles. Similar results are obtained when economic policy uncertainty and R&D interact and are able to reduce emissions at all levels, as shown by quantile regression. The results provide valuable implications for policymakers, emphasizing the importance of fostering innovation while managing policy uncertainty to achieve carbon mitigation goals across varying emission levels within the G20.
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publishDate 2025-07-01
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spelling doaj-art-75fdc600b86f47a1a900ce36cd931bb72025-08-20T03:12:50ZengLLC "CPC "Business Perspectives"Environmental Economics1998-60411998-605X2025-07-01163142810.21511/ee.16(3).2025.0222599Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nationsDharmendra Singh0https://orcid.org/0000-0003-0966-6530Muhammad Naeem1https://orcid.org/0000-0002-9071-1708Shikha Daga2https://orcid.org/0000-0003-4620-5282Umar Ahmed3https://orcid.org/0009-0005-0459-4955Dr., Associate Professor, Department of Business and Economics, Modern College of Business and Science, OmanDr., Assistant Professor, Modern College of Business and Science, OmanDr., Associate Professor, Department of Commerce, PGDAV College, University of Delhi, IndiaDr., Associate Professor, Modern College of Business and Science, OmanType of the article: Research Article AbstractThis study aims to examine the impact of technological innovation on the carbon emissions of the G20 economies while accounting for the moderating role of economic policy uncertainty. To analyze the relationship between emissions and technological innovation in the presence of economic vulnerabilities, the study used the annual data from 2000 to 2023. Panel and quantile regression are used to test the heterogeneous relationship. The results reveal that research and development expenditure (R&D) has a positive and statistically significant impact on emissions at certain quantiles, suggesting that innovation alone may not uniformly contribute to emission reductions. Economic policy uncertainty is documented to have a heterogeneous relationship with emissions, wherein it reduces emissions at lower quantiles, with a positive relationship exhibited at higher quantiles. Similar results are obtained when economic policy uncertainty and R&D interact and are able to reduce emissions at all levels, as shown by quantile regression. The results provide valuable implications for policymakers, emphasizing the importance of fostering innovation while managing policy uncertainty to achieve carbon mitigation goals across varying emission levels within the G20.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22599/EE_2025_03_Singh.pdfcarbon emissioneconomic policy uncertaintymoderationquantile regressionresearch and development expenditure
spellingShingle Dharmendra Singh
Muhammad Naeem
Shikha Daga
Umar Ahmed
Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
Environmental Economics
carbon emission
economic policy uncertainty
moderation
quantile regression
research and development expenditure
title Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
title_full Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
title_fullStr Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
title_full_unstemmed Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
title_short Economic policy uncertainty and the climate challenge: Moderating effects on the innovation–emissions nexus in G20 nations
title_sort economic policy uncertainty and the climate challenge moderating effects on the innovation emissions nexus in g20 nations
topic carbon emission
economic policy uncertainty
moderation
quantile regression
research and development expenditure
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22599/EE_2025_03_Singh.pdf
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AT shikhadaga economicpolicyuncertaintyandtheclimatechallengemoderatingeffectsontheinnovationemissionsnexusing20nations
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