Document Type : Research Paper
Authors
1 Faculty of Economics
2 M.Sc. Economics, Faculty of Economics, Allameh Tabataba’i University, Tehran, Iran
Abstract
This study examined the impacts of economic policy uncertainty and oil price on carbon dioxide emissions as a criterion of environmental quality in seven OPEC member countries from 1990 until 2019. According to the theoretical framework, economic policy uncertainty can directly or indirectly affect the quality of the environment, such as through direct policy adjustment, consumption, and investment channels. In this regard, with the help of panel data, the experimental models of this study were estimated and evaluated by the Fully-modified Ordinary Least Squares (FMOLS) method. The results indicate that the economic policy uncertainty and the oil price variables are statistically significant in both models, and their coefficient is positive. In other words, higher policy-related economic uncertainty and oil price over this period has led to higher carbon dioxide emissions and, thus, lower environmental quality in OPEC member countries. Ultimately, the estimates in the second model confirm an inverse U-shaped relationship between economic growth and the quality of the environment of these countries in the mentioned period, based on the Environmental Kuznets Curve (EKC) hypothesis.
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