Investigating the Role of Economic, Financial, and Political Risks on Carbon Emissions in Iran: Quantile-on-Quantile Regression (QQR) Approach

The relationship between economic, financial, political risks and per capita carbon emission (CO2) is considered as one of the major global challenges. The effect of these three factors on carbon emissions is very important. Therefore, the current research seeks to investigate the role of economic, financial, and political risk in reducing per capita carbon emissions (CO2) by using the very new and fresh approach of quantile-on-quantile regression (QQR) modeling in the annual period from 1990 to 2018. The statistical relationship between the variables mentioned in Eviews12 and Matlab2022 software platform has been investigated for Iran. The results show that the economic risk variable in all quantiles (0.5 to 0.95) had a positive effect on carbon emissions per capita in all quantiles (0.5 to 0.95), and this positive relationship was relatively stronger in the quantiles (0.3 to 0.95), of the economic risk variable. the financial risk variable in all quantiles (0.5 to 0.95) had a positive effect on carbon emissions per capita in all quantiles (0.5 to 0.95), and this positive relationship was relatively weak in all quantiles (0.5 to 0.95) of the financial risk variable, as well as Politics risk has a positive effect on carbon emissions per capita in all quantiles (0.5 to 0.95) and this positive relationship is relatively weak in all quantiles (0.5 to 0.95) of the Politics risk variable. Thus, the need to pay attention to Iran's economic, financial, and political stability to improve the environment's quality and reduce carbon emission (CO2) is very important.1.IntroductionThe most significant global threat in the 21st century is climate change and global warming, primarily driven by carbon dioxide (CO2) emissions (Akadiri et al., 2021; Oladipopo et al., 2021). The rapid development of modern industrial societies worldwide in recent years has led to a gradual rise in the consumption of fossil fuels, including coal, oil, and natural gas. The increased consumption has resulted in the substantial emission of CO2 (Danish et al., 2019; Dong et al., 2018; Zhao et al., 2021). In recent years, there has been an enhanced awareness among governments and international organizations worldwide regarding the impact of climate change on the economy, society, and the environment (Gambier et al., 2022). The heightened awareness has prompted the adoption of environmental protection policies (Roncroni et al., 2021). However, the implementation of these policies requires signific