How effective are climate policy measures in reducing CO2 emissions? Evidence from emerging economies

This study evaluates the impact of climate policy stringency on CO 2 emissions using panel data from 16 emerging economies spanning from 2000 to 2022. By employing robust econometric models—including fixed effects and two-step Generalized Method of Moments—we provide empirical evidence on how different types of climate policies affect emissions reductions in emerging economies. Our results reveal that all policy instruments are statistically significant, with sector-specific and international policies having the greatest impact on emission reduction, while cross-sectoral policies have less influence. Specifically, our ex-post analysis indicates that sector-specific policies reduced cumulative emissions by 3.20–4.31 %, international policies contributed reductions of 1.95–2.49 %, and cross-sectoral policies resulted in reductions of 0.82–1.03 %. Furthermore, our study reveals that the effectiveness of climate policy instruments varies depending on regional and economic contexts. By enhancing the understanding of climate policy effectiveness in emerging economies, our findings offer actionable insights for policymakers aiming to strengthen climate mitigation.