Study On The Impact Of Economic Policy Uncertainty On Environmental Pollution Emission

Since the reform and opening up so far,after 40 years of development,our economic and social development has made great achievements.However,when people enjoy the huge dividends brought by economic and social development,environmental pollution has gradually become a major obstacle to social development.However,since the beginning of the 21 st century,the events of "black swan" and "gray rhinoceros" have brought great instability to global economic and social development.China,as the world’s largest developing country,is not immune.Geopolitics are becoming more complex,international coordination increasingly difficult,and economic uncertainties are on the rise.The sudden increase in economic policy uncertainty caused by such "black swan" and "gray rhinoceros" events has dealt a serious blow to the achievement of stated goals around the world.In addition to its impact on the economic sphere,higher economic policy uncertainty may force firms to adopt environmentally unfriendly production practices,which could increase global emissions of environmental pollution.In recent years,the increased risk of global uncertainty has also posed a severe test to China’s achievement of its goals.International and domestic economic uncertainties pose unknown challenges to China’s international investment and domestic consumption.Based on the above background,this paper aims to solve the following questions:(1)Whether the uncertainty of China’s economic policies will have an impact on environmental pollution emissions at the provincial level in China,and whether the impact is promoting or inhibiting;(2)Whether there is regional heterogeneity under the premise that the uncertainty of China’s economic policy affects provincial environmental pollution emissions;(3)What measures should be taken to achieve high-quality green development in the face of increasing global uncertainties.This paper reviews the literature on economic policy uncertainty and environmental pollution emission,and expounds the current status of economic policy uncertainty and environmental pollution emission in China.Based on relevant theories,the impact of economic policy uncertainty on environmental pollution emission is analyzed from the perspective of "investment effect" and "consumption effect".In this paper,the uncertainty index of economic policy is adopted to measure the uncertainty in China.The comprehensive index of environmental pollution emission calculated on the basis of entropy method and principal component analysis method is used to measure the pollution emission at the provincial level in China.The night light data is used to measure the economic development level of each province and the total amount of actually utilized foreign capital is used to measure the investment level.Sample data of30 provinces and autonomous regions in China from 2008 to 2020 were tested by fixed effect model.The empirical results of this paper show that:(1)Economic policy uncertainty in China has a significant negative effect on environmental pollution emissions on the whole,that is,the higher the economic policy uncertainty index,the lower the comprehensive index of environmental pollution emissions,the less environmental pollution emissions;(2)The impact of economic policy uncertainty on environmental pollution emissions is heterogeneous among eastern,central and western regions.Based on the empirical test results and combined with the actual economic development,this paper puts forward the following suggestions:(1)stabilize the economic policy and promote the use of clean energy;(2)Differentiated investment standards in the eastern and western regions to stabilize the prices of domestic consumer goods;(3)Strengthening international cooperation in the field of environment and jointly creating an environment for peaceful development;(4)Increase green technology research and development efforts to expand market share.