Quarterly Publication

Document Type : Original Article

Authors

1 Economics and Islamic Banking, Faculty of Economics, Kharazmi University, Tehran, Iran

2 National Research Institute for Science Policy (NRISP), Tehran, Iran

3 University of Tehran

4 Allameh Tabataba'i University

10.22050/pbr.2021.294853.1212

Abstract

Since the last of 2019, the global economy has faced with unpredictable consequences of the COVID-19 which reshape various aspects and mechanism of economic market sides. The purpose of this paper is to ascertain the linkage between COVID-19, Carbon dioxide emissions, energy consumption in 34 Asian countries over the period of 2010Q1-2020Q4. To this end, the panel data approach based on the Beck’s theory of risk society and as well the STIRPAT is employed. The major results reveal that the COVID-19 through increasing the risks in the society can accelerate environmental pollution. Moreover, there is a bi-directional linkage between CO2 emissions and social risk index, while there are uni-directional relationships running from the COVID-19 deaths to CO2 emissions per capita; from COVID-19 to fossil fuels consumption and renewable energy consumption; and from renewable energy consumption and fossil fuels consumption to social risk index. It can be concluded that social risk has a significant role in the field of environmental protection and climate change. Any increase in social risk may adversely affect capital mobility, investor motivation, and social responsibilities against environmental pollution. Hence, the increase in this variable due to the outbreak of the COVID-19 accelerates environmental pollution and may be defined as a potential obstacle for countries to reach the SDGs. As main practical policies, establishing green finance funds to attract private investors in the green energy projects and issuing plans to support vulnerable people are highly recommended.

Keywords