Energy consumption, economic uncertainty, and CO2 emission in Asia Pacific region
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Muxuan Zhang
College:
College of Business and Public Management
Major:
Finance
Faculty Research Advisor(s):
Nazif Durmaz
Abstract:
This article employs yearly data from 1985 to 2022 to examine carbon dioxide emissions (CO2), real GDP (Y), GDP per capita (Y2), energy use (EU), and economic policy uncertainty (EPU) in Australia, China, Japan, South Korea, New Zealand, and Singapore. The autoregressive distributed lag model (ARDL) constraint test assesses the adequacy of both short-term and long-term fitness. The findings indicate a positive correlation between the EU and carbon dioxide (CO2) emissions in Australia, China, South Korea, and Japan during a limited time period. Nevertheless, it is worth noting that only Japan and New Zealand exhibit a positive link between energy consumption and carbon dioxide emissions over an extended period of time. The link between GDP and GDP per capita and CO2 emissions varies across various nations. In New Zealand, there is a clear and direct link between economic policy uncertainty (EPU) and carbon dioxide (CO2) emissions. This means that when there is a rise in economic policy uncertainty, there is also a corresponding increase in emissions, both in the short and long term. Hence, it is imperative for governments to contemplate measures aimed at regulating carbon dioxide emissions.