Do geopolitical shocks threaten ESG sustainability uncertainty? Insights from individual G7 economies via wavelet and quantile-based approaches

DOĞAN M., Zeren F.

Journal of Environmental Management, cilt.395, 2025 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 395
  • Basım Tarihi: 2025
  • Doi Numarası: 10.1016/j.jenvman.2025.127744
  • Dergi Adı: Journal of Environmental Management
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus, Academic Search Premier, International Bibliography of Social Sciences, PASCAL, Aerospace Database, Agricultural & Environmental Science Database, Aqualine, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, CAB Abstracts, Communication Abstracts, Environment Index, Geobase, Greenfile, Index Islamicus, Metadex, Pollution Abstracts, Public Affairs Index, Veterinary Science Database, Civil Engineering Abstracts
  • Anahtar Kelimeler: ESGUI, G7 countries, GPR, WKRLS, WQR
  • Bilecik Şeyh Edebali Üniversitesi Adresli: Evet

Özet

Amid escalating geopolitical risks (GPR), understanding how such global tensions shape ESG-based sustainability uncertainty (ESGUI) has become crucial for advancing sustainable environmental management and policy design. This paper examines the relationship between GPR and the ESGUI in G7 Countries. Monthly data covering the period from 2002M11–2025M6 are employed, and the analysis utilizes Wavelet Kernel-Based Regularized Least Squares (WKRLS), Wavelet Quantile Regression (WQR) and Quantile-on-Quantile Connectedness (QQCON) methods. The findings reveal that there is a generally positive relationship between GPR and ESGUI. However, this relationship is neither stable, linear, nor homogeneous; rather, it is shaped by country-specific institutional structures, policy responses, and market conditions. In the short term, positive linkages between the variables are more pronounced, whereas in the medium and long term these relationships appear to weaken. The results of this paper are important for both policymakers and investors in enabling a more comprehensive evaluation of the relationship between GPR and ESGUI.