Economic policy uncertainty and environmental sustainability: assessing evidence from economic growth, demographics, renewables, and environmental governance perspectives

The UN Sustainable Development Goals (SDGs) include SDG 7 (Affordable and Clean Energy) and SDG 8 (Decent Work and Economic Growth), SDG 13 (Climate Action) underscores the current study to assess the interactions of economic policy uncertainty (EPU) with environmental sustainability in East Asia, offering insights for other similar economies. The analysis is based on data from China, Japan, South Korea, and Singapore, spanning the period from 1990 to 2023, of EPU, economic growth (ECG), renewable energy transition (RET), environmental governance (ENG), and population dynamics (POP) on CO2 emissions. Using advanced econometric techniques such as Driscoll-Kraay standard errors (DKSE), fully modified ordinary least squares (FMOLS), dynamic ordinary least squares (DOLS), and method of moments quantile regression (MMQR), the results shows that EPU weakly reduces emissions. The study further reveals that economic growth (ECG) and population growth increase emissions significantly, while renewable energy transition reduces emissions. Environmental governance yields mixed results, a signal for more vigorous enforcement. The findings indicate that stable policies, investments in renewable energy sources, and strong governance are needed to reconcile economic growth with environmental sustainability. The findings have significant implications for the SDGs in East Asia and beyond.