Authors: Antonios Persakis, Ioannis Tsakalos, Vasileios Gkonis

Title: The effect of climate policy uncertainty on environmental degradation: Does democracy and globalization matters? Evidence from heavy and light emitters worldwide

Abstract

The objective of this research is to examine the correlation between uncertainty in climate policy, degradation of the environment, and the potential moderating influences of democracy and globalisation among both heavy and light emitters on a worldwide level. The phenomenon of climate change presents a significant peril to the Earth, necessitating the implementation of collaborative measures among nations in order to alleviate its impacts. Nevertheless, the efficacy of climate policies in mitigating environmental degradation could be impacted by a multitude of political and economic variables. This study utilises a comprehensive dataset consisting of 129 countries with varying levels of emissions, covering the period from 1996 to 2022. Advanced econometric techniques are employed to investigate the influence of uncertainty in climate policy on environmental degradation. Furthermore, we investigate the impact of democracy and globalisation on this association. The results of our study indicate a strong correlation between the presence of uncertainty in climate policy and reduced levels of environmental degradation, particularly in countries with high levels of emissions. Furthermore, the findings suggest that countries with democratic systems are inclined to adopt a proactive stance in addressing environmental degradation, particularly when faced with policy uncertainty. Nevertheless, the effects of globalisation are multifaceted, encompassing both advantageous and detrimental outcomes that vary depending on the particular circumstances. The study underscores the significance of implementing consistent and foreseeable climate policies as a means of effectively tackling global environmental issues. Furthermore, it highlights the significance of democratic governance in promoting environmentally conscientious policies. The intricate interaction between globalisation and environmental outcomes underscores the necessity for customised policy solutions that take into account the distinct circumstances of individual nations. The aforementioned discoveries make a valuable contribution to the ongoing academic discussion surrounding climate policy and environmental sustainability. They provide valuable insights into the significance of political and economic factors in influencing the direction of global environmental initiatives. This research can serve as a valuable resource for policymakers and stakeholders seeking to develop effective strategies to address global environmental degradation and promote climate change mitigation efforts on a global scale.