Renewable energy consumption and CO2 emissions nexus in the USA: the role of technical innovation

Abstract

Using the QARDL approach and data from January of 2010 to May of 2022, we explore how renewable energy consumption affects CO₂ emissions in the USA. Long-term analysis reveals a negative link between these variables, while only lower quantile levels show short-term statistical significance. Integrating technical innovation (measured by patents) in our QARDL model shows substantial reduction in CO₂ emissions, with varying effects over time. Interestingly, only renewable energy consumption, not technical innovation, significantly impacts CO₂ emissions at lower quantile levels. These findings emphasize the crucial role of renewable energy in reducing both short-term and long-term CO₂ emissions and offer policymakers valuable insights for shaping effective energy strategies to combat emissions and promote sustainability in the USA.

Keywords: CO2 emissions; Quantile ARDL model; Renewable energy consumption; Technical innovation (patent number).