Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development
Climate policy is crucial in shaping global responses to environmental challenges and steering societies towards sustainable and resilient futures. Thus, in research study, we examine the impacts of Economic (ECONF), Environmental (ENVF), Social (SOCF), and Governance (GOVNF) factors, as well as the...
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| Language: | English |
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Elsevier
2025-02-01
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| Series: | Heliyon |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S240584402500324X |
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| author | Cem Işık Serdar Ongan Jiale Yan Hasibul Islam |
| author_facet | Cem Işık Serdar Ongan Jiale Yan Hasibul Islam |
| author_sort | Cem Işık |
| collection | DOAJ |
| description | Climate policy is crucial in shaping global responses to environmental challenges and steering societies towards sustainable and resilient futures. Thus, in research study, we examine the impacts of Economic (ECONF), Environmental (ENVF), Social (SOCF), and Governance (GOVNF) factors, as well as the combined (ECON-ESG) factors, on Climate Policy Uncertainty (CPU) at the global level. The new ECON-ESG form of sustainability, defined in this study, refers to the holistic approach to sustainability by including economic factors (ECON) to traditional ESG factors. Empirical findings reveal that while environmental (E) and social (S) factors worsen the CPU, economic factors (ECON) improve it in the long run. Governance (G) factors have no impact on the CPU. While a 1 % increase in E and S increases the CPU by 22 % and 27 %, the same percentage increase in ECON decreases it by 40 %. These results clearly show that analyses conducted only through the conventional form of ESG may be insufficient and inaccurate in analyzing the effects on the CPU. Our study's result should not be considered limited to the CPU only, and it will be helpful to use this proposed form, ECON-ESG, as a more comprehensive sustainability concept in sustainability studies since it also incorporates economic factors. This approach will enable policymakers to look at climate policies through a holistic sustainability lens with ECON-ESG. These results show that policymakers should adopt a holistic sustainability approach that includes economic factors when shaping climate policies. |
| format | Article |
| id | doaj-art-b7ed362ccfde41b1a963c21b8422fe3c |
| institution | Kabale University |
| issn | 2405-8440 |
| language | English |
| publishDate | 2025-02-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj-art-b7ed362ccfde41b1a963c21b8422fe3c2025-01-30T05:14:34ZengElsevierHeliyon2405-84402025-02-01113e41944Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable developmentCem Işık0Serdar Ongan1Jiale Yan2Hasibul Islam3Department of Economics, Faculty of Economics and Administrative Sciences Anadolu University, Eskişehir, Türkiye; Baku Eurasian University, Economic Research Center (BAAU-ERC), Baku, Azerbaijan; Azerbaijan State University of Economics (UNEC), Clinic of Economics, Baku, Azerbaijan; Western Caspian University, Economic Research Center (WCERC), Baku, AzerbaijanDepartment of Economics, University of South Florida, Tampa, USACollege of Letters and Science, University of California Berkeley, CA, 94720, USA; Corresponding author.Department of Business Administration, Varendra University, Rajshahi, BangladeshClimate policy is crucial in shaping global responses to environmental challenges and steering societies towards sustainable and resilient futures. Thus, in research study, we examine the impacts of Economic (ECONF), Environmental (ENVF), Social (SOCF), and Governance (GOVNF) factors, as well as the combined (ECON-ESG) factors, on Climate Policy Uncertainty (CPU) at the global level. The new ECON-ESG form of sustainability, defined in this study, refers to the holistic approach to sustainability by including economic factors (ECON) to traditional ESG factors. Empirical findings reveal that while environmental (E) and social (S) factors worsen the CPU, economic factors (ECON) improve it in the long run. Governance (G) factors have no impact on the CPU. While a 1 % increase in E and S increases the CPU by 22 % and 27 %, the same percentage increase in ECON decreases it by 40 %. These results clearly show that analyses conducted only through the conventional form of ESG may be insufficient and inaccurate in analyzing the effects on the CPU. Our study's result should not be considered limited to the CPU only, and it will be helpful to use this proposed form, ECON-ESG, as a more comprehensive sustainability concept in sustainability studies since it also incorporates economic factors. This approach will enable policymakers to look at climate policies through a holistic sustainability lens with ECON-ESG. These results show that policymakers should adopt a holistic sustainability approach that includes economic factors when shaping climate policies.http://www.sciencedirect.com/science/article/pii/S240584402500324XClimate policy uncertaintyECON-ESGCarbon neutralityEESG |
| spellingShingle | Cem Işık Serdar Ongan Jiale Yan Hasibul Islam Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development Heliyon Climate policy uncertainty ECON-ESG Carbon neutrality EESG |
| title | Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development |
| title_full | Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development |
| title_fullStr | Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development |
| title_full_unstemmed | Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development |
| title_short | Towards carbon neutrality & COP29 Baku / Azerbaijan - COP30 Belem / Brazil: Exploring the impacts of economic, environmental, social, and governance (ECON-ESG) factors on Climate Policy Uncertainty (CPU) for sustainable development |
| title_sort | towards carbon neutrality amp cop29 baku azerbaijan cop30 belem brazil exploring the impacts of economic environmental social and governance econ esg factors on climate policy uncertainty cpu for sustainable development |
| topic | Climate policy uncertainty ECON-ESG Carbon neutrality EESG |
| url | http://www.sciencedirect.com/science/article/pii/S240584402500324X |
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