The Relationship between Climate Policy Uncertainty and Inflation: The Case of the USA

Authors : Başak Özarslan Doğan

Pages : 675-687

Doi:10.17153/oguiibf.1292370

View : 301 | Download : 378

Publication Date : 2023-12-01

Article Type : Research Paper

Abstract :In this study, the relationship between climate policy uncertainty and inflation in the 1990-2021 period in the USA was examined with the help of the ARDL Bound test, using Real GDP, total labor force, and carbon emissions as control variables. The climate policy uncertainty index used to measure climate policy uncertainty in the study was obtained from Gavriilidis (2021), and data on other variables were obtained from "the World Bank” and "Our World in Data” databases. The study\'s findings show a positive and statistically significant relationship between climate policy uncertainty and inflation in the USA in the period under review. Also, carbon emissions and GDP positively affect inflation, and the coefficients are statistically significant. However, although the total labor force positively affected inflation, it was found to be statistically insignificant.
Keywords : İklim Politika Belirsizlik Endeksi, Enflasyon, ARDL, Karbon Emisyonları