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.