Novel research methods for energy use, carbon emissions, and economic growth: evidence from the USA

Abstract

Researchers and governments are debating whether to use renewable energy sources or fossil fuels. The impact of the final decision on developed and developing regions is either the same or different. To investigate the answers to these issues, the current study used panel data for the US economy from 1985 to 2020. Following preliminary diagnostic testing, the researchers discovered that the data is stationary at the level and has long-run cointegration. Furthermore, the influence of economic growth (GDP), nonrenewable energy (EU), and renewable energy consumption was investigated using the quantile regression approach (REC). The analysis discovered that the impact of GDP and the EU on carbon emissions is lowest in industrialized countries and highest in underdeveloped countries. However, the corrective influence of REC on carbon emissions is lowest in industrialized countries and highest in developing regions. Although the GDP and EU have less influence on carbon emissions, the corrective effect of REC is also the least; consequently, policymakers should encourage the aggregate production system to use more REC than the EU as a sustainable alternative.