Asymmetric linkages between pandemic uncertainty and environmental quality: Evidence from emerging economies

The current COVID-19 pandemic was a huge shock, influencing a wide range of socioeconomic measures, including the environment. The issue of how the uncertainty caused by pandemics will influence environmental quality is critical. This research examines the nonlinear relationship between pandemic uncertainty and environmental quality across leading polluted emerging economies (China, India, Russia, Indonesia, Brazil, Mexico, Iran, Saudi Arabia, South Africa, and Turkey). Using data ranging from 1996 to 2020, a distinctive approach, ‘Quantile-on-Quantile', is used. Greenhouse gas emissions (GHG) are adopted as a proxy for environmental quality. The outcomes analyze how pandemic uncertainty's quantiles influence the quantiles of GHG asymmetrically, giving an efficient paradigm for grasping the entire dependence structure. The findings show that pandemic uncertainty improves environmental quality by decreasing GHG in our sample economies at diverse quantiles. Higher levels of GHG (75th–90th quantiles) suggest a strong negative association between pandemic uncertainty and GHG in the majority of nations. The magnitude of the coefficients helps to explain why pandemic uncertainty has a significantly greater impact on GHG in Mexico and Turkey (with a coefficient size of −2) compared to Russia, India, and South Africa, where the effect is considerably smaller (with a coefficient size of −0.05). Furthermore, the rank of asymmetry in our chosen variables fluctuates by nation, underscoring the prominence of governments exercising caution and prudence while implementing pandemic-based uncertainty and environmental quality measures.

Uncertainty in firm innovation scheme and impact of green fiscal policy, Economic recovery of Chinese firms in the post-Covid-19 era

With the Covid-19 outbreak, changing prices of natural resource raw materials are driving up industrial costs, limiting output, and jeopardising economic growth. To encourage the revival of the green economy, fiscal and budgetary policies must focus on fostering innovation and growth. This essay investigates the incentives and mechanics of innovation as a recovery strategy by looking at the impact of tiny tax cuts on energy. Using quarterly data from listed Chinese firms from Q1 2019 to Q2 2021, estimate and draw numerous conclusions using a variance-variance technique. To begin with, innovation is a means of regaining and expanding market share, and tax incentives to enhance energy efficiency may be extremely beneficial to a company's inventive efforts. Second, our findings suggest that tax incentives for energy efficiency encourage businesses to invest in innovation by alleviating financial constraints. Finally, corporations may cut financial expenditures and internal cash flow by sponsoring creative activities. The findings have significant policy implications, since they show that successful eco-design fiscal policies might be part of a post-Covid-19 recovery business transformation programme.