Revisited Globalization's Impact on Total Environment: Evidence Based on Overall Environmental Performance Index

Economic Policy Uncertainty, Social Development, Political Regimes and Environmental Quality

This paper aims to examine the influence of Economic Policy Uncertainty (EPU) on environmental performance, as well as the moderating effect of social development and the political regimes in EPU’s influence on environmental performance. To investigate such essential issues, we conducted Generalized Method of Moments (GMM) estimations by utilizing cross-country data covering 137 countries during the period of 2001–2018, according to the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model. Our empirical estimations support that EPU negatively affects environmental performance; this idea was still supported when we conducted an empirical analysis by changing the measurements, employing alternative estimations and constructing new samples. Furthermore, not only would the absolute level of EPU bring worse environmental performance, but so would an increase in EPU. Moreover, higher economic performance, globalization and a high quality of governance can help countries to alleviate the adverse environmental effect of EPU. Additionally, EPU’s negative effect on environmental performance is stronger in right-wing countries, autocracies and non-OECD countries, compared to their counterparts. Our study provides substantial policy implications for governments participating in the international treaties of environmental protection, to mitigate environmental degradation.

Impact of Economic Policy Uncertainty on Carbon Emissions: Evidence from 137 Multinational Countries

With growing economic policy uncertainty (EPU) and the importance of protecting the natural environment worldwide, the relationship between EPU and carbon emissions should be investigated further. However, conclusions in the existing literature on the relationship between EPU and carbon emission are inconclusive. This paper aims to examine the influence of EPU on carbon emissions according to the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) model. To investigate such essential issues, we conduct GMM estimations by utilizing cross-country data covering 137 countries during the period 1970–2018, obtained from World Bank and OECD statistics. Our empirical estimations support that EPU would bring about more carbon emissions, while we conduct empirical analysis by changing the system of measurement, employing alternative estimation and constructing new samples. Our study provides substantial policy implications for government participation in international treaties on environmental protection to mitigate environmental degradation.

The Impact of Globalization on Forest Growth: Evidence from Multinational Panel Data

Even though some existing literature has studied the impact of globalization on forest growth, this research remains inconclusive; moreover, little clarification has emerged as to whether the influence of globalization on forest growth is consistent among different countries. To fill this research gap, we investigated the impact of globalization on forest growth and considered what factors could change the influence of the former upon the latter. To empirically investigate these essential issues, we utilized cross-country data covering 108 countries during the period 1991–2018 to conduct a system generalized method of moment (GMM) estimation. The baseline results confirm the positive impact of globalization on forest growth, which is also supported by several robustness tests, such as changing the measurements and setting new samples. Furthermore, an increase in globalization would bring about higher forest growth. Aside from this, two specific dimensions of globalization, namely economics and trade, can also protect forest growth. Additionally, a higher FDI strengthens the positive impact of globalization on forest growth, while aging, industrial share, and CO₂ emissions weaken it. Finally, the impact of globalization on forests is weaker in democracies, emerging markets, and countries with higher fiscal freedoms, while it is stronger in countries with higher political stability. Our study provides substantial policy implications for governments participating in international treaties related to forest growth. The structure of this paper is organized as follows.