How Do Energy Uncertainty and Geopolitical Risk Shape ESG Uncertainty?
摘要
This study investigates the impact of energy uncertainty and geopolitical risks on ESG uncertainty in Japan. Using monthly data from November 2002 to June 2025, we employ an Auto-Regressive Distributed Lag (ARDL) model. Our findings show that increases in either the energy uncertainty index or geopolitical risk significantly elevate ESG uncertainty, while their combined effect further amplifies this impact. These results advance understanding of the determinants of ESG uncertainty and emphasize the need to monitor energy and geopolitical developments for effective integrated risk management in Japan’s economic and institutional environment.