Assessing the role of Environmental Legislation in Mitigating Climate Risk in GCC: A quantile ARDL approach
Climate risk manifested through rising temperatures, extreme
weather events, and ecological degradation poses a growing threat to
environmental and economic stability, particularly in resource-dependent
regions such as the Gulf Cooperation Council (GCC). This paper aims to
empirically examine the short- and long-term effects of environmental
legislation on climate risk, considering the roles of eco-friendly regulations,
Information and Communication Technology (ICT), and domestic extraction in the
GCC countries. Using the panel Quantile ARDL technique, the findings suggest
that climate legislation effectively mitigates climate risk. This effect is
notably increased at the upper quantile in the long run. A similar effect of
ICT indicates its vital role in managing climate risk.