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Nakhli, Mohamed Sahbi; Shahbaz, Muhammad; Ben Jebli, Mehdi; Wang, Shizhen
Renewable energy, February 2022, 2022-02-00, Volume: 185Journal Article
This research attempts to examine the relationship between renewable and non-renewable electricity consumption, carbon dioxide (CO2) emissions and economic policy uncertainty for the United States. For empirical analysis, the study employs monthly data for the period of 1985M1 to 2020M12 and used Bootstrap Rolling approach. The empirical findings revealed that, for full sample Granger causality test, there is a unidirectional causality running from electricity consumption to economic policy uncertainty and bidirectional causality between CO2 emissions and economic policy uncertainty. The estimated parameters are statistically unstable for three models. Overall, the conclusion of study supports the sustainable development goals (SDGs: 7, 10, 13) of the United States. The study argues that policymakers and political leadership of US should be aware of climate change consequences in order to fulfill carbon neutrality target and should develop economic policies accordingly in-line with energy security, clean and greener energy for all and sustainable cleaner production objectives. Further, the uncertainty issues should be considered while designing the environmental regulations.
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