Journal
FRONTIERS IN ENERGY RESEARCH
Volume 10, Issue -, Pages -Publisher
FRONTIERS MEDIA SA
DOI: 10.3389/fenrg.2022.866217
Keywords
carbon emissions; economic policy uncertainty; heterogeneous effects; green and low-carbon transformation; emission reduction
Categories
Funding
- National Natural Science Foundation of China [72174180, 71673250]
- Zhejiang Provincial Natural Science Foundation for Distinguished Young Scholars [LR18G030001]
- Major Projects of the Key Research Base of Humanities Under the Ministry of Education [14JJD790019]
- Zhejiang Provincial Philosophy and Social Science Planning Project [22QNYC13ZD, 21NDYD097Z]
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This study uses data from 325 prefecture-level cities in China and finds that economic policy uncertainty has a significant impact on city's carbon emission intensity, with a one percentage point increase in uncertainty leading to a 4.28 percentage point increase in carbon emission intensity.
Estimating the impact of economic policy uncertainty (EPU) on carbon emissions is crucial for formulating emission reduction targets and policies. Using the unbalanced panel data of 325 prefecture-level cities in China from 2001 to 2017 and a two-way fixed-effects model, this paper investigates the impact of economic policy uncertainty on city's carbon emission intensity. We find that one percentage point increase in economic policy uncertainty will make the city's carbon emission intensity increase by 4.28 percentage points, and by 0.244 tons per ten thousand yuan at an absolute level. The findings imply that policy makers need to consider the potential threat of economic policy uncertainty on carbon peaking and carbon neutrality in China.
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