How Economic and Monetary Policy Uncertainty Affect Climate Policy Uncertainty in the United States?

Ahmet Tayfur Akcan; Muhammad Shahbaz; Cuneyt Kılıç; Hasan Kazak

doi:10.35784/preko.6635

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Published: Jan 10, 2025

DOI: https://doi.org/10.35784/preko.6635

Issue Vol. 20 No. 1 (2025)

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How Economic and Monetary Policy Uncertainty Affect Climate Policy Uncertainty in the United States?
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DOI

https://doi.org/10.35784/preko.6635

Authors

Ahmet Tayfur Akcan

tayfurakcan@hotmail.com

Necmettin Erbakan University, Turkey

https://orcid.org/0000-0001-8210-7327

Muhammad Shahbaz

muhdshahbaz77@gmail.com

Beijing Institute of Technology, School of Economics, Beijing, China

https://orcid.org/0000-0003-2391-6997

Cuneyt Kılıç

ckilic@comu.edu.tr

Canakkale Onsekiz Mart University, Turkey

https://orcid.org/0000-0003-0622-7145

Hasan Kazak

hsnkazak@gmail.com

Gulf University for Science and Technology, Turkey

https://orcid.org/0000-0003-0699-5371

Abstract

Policy uncertainties can directly affect the outcomes of policies to be implemented and other related policies. Therefore, it is important to reduce policy uncertainties. Identifying policy uncertainties and related factors is important in this regard. This study examines the impact of economic and monetary policy uncertainty on climate policy uncertainty in the United States. The relationship between the variables is examined asymmetrically using monthly data for 1988-2022. First, the Augmented Dickey-Fuller Unit Root Test and the Fractional Frequency Fourier Augmented Dickey-Fuller Unit Root Test are applied. The Asymmetric Wavelet Transform Coherence Test is also used to determine the direction and frequency of the relationship between the variables. Asymmetric time-varying causality analysis was used for the causality dimension. The significant relationship between economic policy uncertainty, monetary policy uncertainty and climate policy uncertainty varies at different time periods.

Keywords:

sustainable development, policy uncertainties, asymmetric tests

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Akcan, A. T., Shahbaz, M., Kılıç, C., & Kazak, H. (2025). How Economic and Monetary Policy Uncertainty Affect Climate Policy Uncertainty in the United States?. Problemy Ekorozwoju Problems of Sustainable Development, 20(1), 190–207. https://doi.org/10.35784/preko.6635

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How Economic and Monetary Policy Uncertainty Affect Climate Policy Uncertainty in the United States?

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