Nexus Between Economic Policy Uncertainty and Green Growth in BRICS Countries: Evidence from Panel Quantile Regression

In order to achieve "SDG-7" and "SDG-13," which are related to clean energy and climatic actions, it is viable to enhance green growth (GGDP). However, there are several barriers to attain high GGDP, especially in developing countries. One of the constraints to GGDP could be economic policy uncertainty (EPU), but there exists a sparse literature on the EPU-GGDP nexus. The scant literature on the EPU-GGDP nexus does not properly guide policymakers to instigate policies for SDG-7 and SDG-13. Therefore, we investigate whether EPU impedes GGDP in BRICS countries using a panel dataset spanning the period 1990-2020. The outcomes from the panel quantile regression (PQR) reveal that EPU mitigates GGDP across all quantiles. Further, the adverse impact of EPU is strong at lower quantiles, whereas the strength of the EPU-GGDP relationship is meager at high quantiles. Considering the outcomes of the study, we suggest policymakers to mitigate the uncertainty in economic policies to escalate GGDP.