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<p>As global carbon emissions continue driving unprecedented climate impacts from rising sea levels to extreme heat events, understanding the role of entrepreneurship and environmental policy with emissions across different contexts has become important for developing effective sustainability strategies. Using the Method of Moments Quantile regressions analysis, we show that entrepreneurship demonstrates a significant negative association with carbon emissions, with effects reducing at higher-emission contexts (coefficients from − 0.107 at the 25th quantile to -0.0873 at the 90th quantile). Similarly, environmental policy shows a negative but diminishing impact (from − 0.135 at the 25th quantile to -0.0628 at the 90th quantile) with declining statistical significance in higher quantiles. Economic growth consistently increases emissions, while trade patterns reveal contrasting effects, imports positively and exports negatively associated with emissions. These findings suggest entrepreneurship is an increasingly effective emission reduction mechanism as traditional policies face limitations. Policymakers should develop integrated strategies combining entrepreneurial promotion with contextually appropriate regulations, recognizing that emission reduction approaches must be calibrated to different emission level to increase effectiveness.</p>

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Entrepreneurial formation and policy stringency: analyzing impacts on low-carbon transition pathways

  • 期刊论文

  • 发表日期：

    2026年1月3日

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  • Hsuling Chang,
  • Nawazish Mirza,
  • Adnan Safi,
  • Muhammad Umar

摘要

As global carbon emissions continue driving unprecedented climate impacts from rising sea levels to extreme heat events, understanding the role of entrepreneurship and environmental policy with emissions across different contexts has become important for developing effective sustainability strategies. Using the Method of Moments Quantile regressions analysis, we show that entrepreneurship demonstrates a significant negative association with carbon emissions, with effects reducing at higher-emission contexts (coefficients from − 0.107 at the 25th quantile to -0.0873 at the 90th quantile). Similarly, environmental policy shows a negative but diminishing impact (from − 0.135 at the 25th quantile to -0.0628 at the 90th quantile) with declining statistical significance in higher quantiles. Economic growth consistently increases emissions, while trade patterns reveal contrasting effects, imports positively and exports negatively associated with emissions. These findings suggest entrepreneurship is an increasingly effective emission reduction mechanism as traditional policies face limitations. Policymakers should develop integrated strategies combining entrepreneurial promotion with contextually appropriate regulations, recognizing that emission reduction approaches must be calibrated to different emission level to increase effectiveness.