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Exploring the impact of economic, climate, and energy policy uncertainty on the Environmental Kuznets Curve: International evidence

Author

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  • Barra, Cristian
  • Falcone, Pasquale Marcello
  • Giganti, Patrizio

Abstract

The academic relevance of environmental pollution and its relationship with economic growth is an acclaimed research field. However, the implications of linking these variables with economic, climate, and energy policies represent the new frontier of the debate. Among the popular theories regarding the nexus between environmental pollution and economic growth, the Environmental Kuznets Curve (EKC) is highly debated. Additionally, the economic policy implications of uncertainty play a significant role. This work aims to investigate the existence of the EKC and the impact of some uncertainty indexes on it. The investigation includes analyzing both the direct impact of newly observed variables on pollution and the moderating effect of uncertainty indexes on the primary nexus. Specifically, three types of uncertainty are examined: economic policy, climate policy, and energy-related policy. The findings reflect the EKC's persistence and the relevance of moderating effects, mainly depending on the country's categorization. This aspect, along with sample heterogeneity and factors such as the implementation of the Kyoto Protocol Agreement, is examined in the robustness section.

Suggested Citation

  • Barra, Cristian & Falcone, Pasquale Marcello & Giganti, Patrizio, 2025. "Exploring the impact of economic, climate, and energy policy uncertainty on the Environmental Kuznets Curve: International evidence," International Economics, Elsevier, vol. 182(C).
  • Handle: RePEc:eee:inteco:v:182:y:2025:i:c:s2110701725000150
    DOI: 10.1016/j.inteco.2025.100592
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    Keywords

    Environmental Kuznets curve; Climate policy uncertainty; Economic policy uncertainty; Energy-related uncertainty;
    All these keywords.

    JEL classification:

    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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