Economic Policy Uncertainty, Renewable Energy Consumption and Environmental Sustainability in China

Climate change, global warming and environmental degradation have become the serious threat for the planet. Climate change cause earthquakes severs storms, food security and uneven rainfall; CO2 emissions are major component of climate change. The literature on impact of economic policy on climate change has attained the great attention of policy makers and research now a day. This paper seeks out the impact of EPU, foreign direct investment, urbanization and renewable energy consumption on the environmental sustainability. The study employs Autoregressive distributed lag (ARDL) model to analyze the data from China during 1995 to 2021. The empirical findings revealed that EPU, Urbanization and FDI have positive impact on CO2 emissions, while renewable energy consumption has negative impact on CO2 emissions in China.