What question did this study set out to answer?

This research aims to understand how inflation and unemployment rates influence CO2 emissions in RECAI countries from 2003 to 2022.

March 6, 2026Asian Economics Letters0 citationsOpen Access

Do Inflation and Unemployment Rates Affect Environmental Quality in the Case of RECAI Countries?

SRShimul Roy

Key Points

This research aims to understand how inflation and unemployment rates influence CO2 emissions in RECAI countries from 2003 to 2022.
Analyzed CO2 emissions data from RECAI countries between 2003-2022.
Employed the common correlated effects mean group estimator for analysis.
Evaluated the relationship between inflation, unemployment, and CO2 emissions.
Both inflation and unemployment show a negative association with CO2 emissions.
Higher inflation and unemployment are linked to lower CO2 emissions.
Policy implications indicate the need for sustainable economic practices.

Abstract

This study examines the impact of inflation and unemployment on CO 2 emissions in the Renewable Energy Country Attractiveness Index (RECAI) nations over the period 2003–2022. By employing the common correlated effects mean group estimator, the results suggest that both inflation and unemployment are negatively associated with CO 2 emissions. The policy implications suggest that governments and financial institutions must prioritise sustainable economic policies, incentivise green investments, and promote employment strategies aligned with low-carbon transitions.

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