How Economic Policy Uncertainty Affect Carbon Emissions: A Case of G-7 Countries

Abstract

In today's world, environmental problems, which have rapidly increased in the last few years, have become one of the leading problems in both developing countries and developing countries. As it is known, the increase in CO2 emissions causes global warming in the background of the climate change problem. In this study, it is aimed to investigate the effects of economic policy uncertainty, energy use and economic growth on CO2 emissions in G-7 economies. This was tried to be determined by the panel data set containing the data between 1997-2015 and the Parks-Kmenta Estimator. Estimation results show that energy use and economic growth have a statistically significant and positive impact on CO2 emissions. However, economic policy uncertainty has a statistically significant and negative effect on CO2 emissions.