30:T472,

The environmental Kuznets curve (EKC) proposes an inverted U-shaped link between economic growth and environmental degradation. However, the impact of economic policy uncertainty (EPU) on this link has been understudied. This study examined a panel of 25 emerging economies between 2000 and 2020, employing generalized method of moments techniques to investigate how fluctuations in EPU affect the EKC’s trajectory. The study results revealed that higher levels of uncertainty extend the EKC’s turning point, prolonging the shift from increasing to decreasing environmental degradation. The turning point of the EKC under uncertainty occurs at a higher per capita income and emissions level than in the scenario without uncertainty. The study results also revealed that while carbon emissions in the sampled countries decrease with increasing renewable energy use and research and development, they increase with rising foreign direct investment. The findings draw attention to policymakers that EPU could hamper global efforts to reduce emissions in developing economies.

JEL Classification: Q56, O13, C33

31:T4a2,

This article investigates the time-varying impact of sanctions on the corporate investment of non-financial listed firms in China during the period 2010–2021. The findings indicate that Chinese firms tend to reduce investment as sanctions intensify. Moreover, investment–cash flow sensitivity weakens under sanctions, with the decline being more pronounced for firms facing external financial constraints. This suggests that corporate investment is not only reduced by sanctions themselves but also becomes less dependent on internal cash flows, contrary to the pecking order theory typically observed in normal times. Such behavior reflects a “wait-and-see” strategy under uncertainty, as firms prioritize liquidity demands over new investments. Evidence of this mechanism is confirmed by the positive relationship between sanctions and net working capital. In addition, the analysis reveals that trade openness can mitigate the adverse effects of sanctions on corporate investment. The results remain robust under alternative measures of sanctions and after addressing potential endogeneity concerns.

JEL Classification D22, D25, F14, F51, G31, O16

32:T5f8,