Are environmental policy stringency and green energy mediators in the nexus between economic policy uncertainty and environmental sustainability in OECD countries?

Are environmental policy stringency and green energy mediators in the nexus between economic policy uncertainty and environmental sustainability in OECD countries? | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Are environmental policy stringency and green energy mediators in the nexus between economic policy uncertainty and environmental sustainability in OECD countries? Brayan Tillaguango, Rafael Alvarado, Muntasir Murshed, Cem Isik, and 1 more This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8808708/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 8 You are reading this latest preprint version Abstract In developed countries, there is growing uncertainty regarding the trade-off between deepening environmental sustainability and increasing production to maintain employment and income levels. This research aims to examine the mediating effect of environmental policy stringency and green energy on the nexus between economic policy uncertainty and environmental sustainability in the countries of the Organisation for Economic Co-operation and Development. The nexus between economic policy uncertainty and environmental sustainability was moderated by economic growth, population density, economic globalization, and environmental taxes. We employed a set of panel data techniques: Pooled Ordinary Least Squares (POLS), Feasible Generalized Least Squares (FGLS), and the System Generalized Method of Moments (SYS-GMM). Specifically, we propose that the mechanism transmitting the effect of economic policy uncertainty to environmental sustainability is due to the environmental policy stringency and the ongoing search for clean energy sources. The findings show that environmental sustainability has structural inertia due to the organization of production and energy systems and the level of economic development in this group of countries. We also found that population density, economic policy uncertainty, and trade globalization have a negative effect on environmental sustainability. The findings are consistent when using the urban primacy index as an alternative measure of population density. Furthermore, we applied Lewbel's (2012) instrumental variables strategy to reduce the potential endogeneity between economic policy uncertainty and environmental sustainability. Finally, we used the load capacity factor as a proxy for environmental sustainability, and the findings are robust. In addition, the findings show that the environmental policy stringency and green energy act as mediators in the link between economic policy uncertainty and environmental sustainability in developed countries. Environmental policymakers should promote environmental quality by implementing stricter regulations and encouraging the adoption of green energy. Environmental Sustainability Economic policy Uncertainty Environmental Policy Stringency Index Green energy Mediating effect Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Under Review Version 1 posted Reviewers agreed at journal 24 Feb, 2026 Reviewers agreed at journal 23 Feb, 2026 Reviewers agreed at journal 23 Feb, 2026 Reviewers agreed at journal 23 Feb, 2026 Reviewers invited by journal 23 Feb, 2026 Editor assigned by journal 19 Feb, 2026 Submission checks completed at journal 18 Feb, 2026 First submitted to journal 06 Feb, 2026 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8808708","acceptedTermsAndConditions":true,"allowDirectSubmit":false,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":598551794,"identity":"fca28533-1795-43c1-8307-f3b952770072","order_by":0,"name":"Brayan Tillaguango","email":"","orcid":"","institution":"Universidad de Especialidades Espíritu Santo","correspondingAuthor":false,"prefix":"","firstName":"Brayan","middleName":"","lastName":"Tillaguango","suffix":""},{"id":598551796,"identity":"ea372d18-fa00-4fc2-94c7-a10ea2684a4f","order_by":1,"name":"Rafael 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