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Overcoming the shock of energy depletion for energy policy? Tracing the missing link between energy depletion, renewable energy development and decarbonization in the USA

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  • Hossain, Mohammad Razib
  • Singh, Sanjeet
  • Sharma, Gagan Deep
  • Apostu, Simona-Andreea
  • Bansal, Pooja

Abstract

In purifying the world's atmosphere and deterring the negative externalities from the excessive usage of fossil fuels, researchers have indoctrinated the global community to look for alternatives to fossil fuels, which is also in line with the Glasgow Climate Pact (COP26). To unveil how to absorb energy depletion shock, this paper turns the spotlight on the dynamic relationship between CO2 emissions, energy depletion, renewable energy development, and economic growth in the USA, spanning from 1980 to 2019. We have applied the novel dynamic ARDL model to reach our empirical conclusions. Our results unveil that economic growth negatively affects the USA's ecological balance. We observe that energy depletion negatively affects CO2 emissions in the short and long-term, ameliorating USA's environmental sustainability. Additionally, the transition to renewables lessens the overall pollution in the long-run. Overall, energy depletion can fix the loopholes within the USA's natural environment and atmosphere; however, it can be scary for higher authorities, given that it may curb economic growth. Therefore, the USA should judiciously estimate and juxtapose the costs and benefits of energy depletion and transition to renewables. If the cost is too high, the country can consider a phase-to-phase transition rather than a complete 100% transition.

Suggested Citation

  • Hossain, Mohammad Razib & Singh, Sanjeet & Sharma, Gagan Deep & Apostu, Simona-Andreea & Bansal, Pooja, 2023. "Overcoming the shock of energy depletion for energy policy? Tracing the missing link between energy depletion, renewable energy development and decarbonization in the USA," Energy Policy, Elsevier, vol. 174(C).
  • Handle: RePEc:eee:enepol:v:174:y:2023:i:c:s030142152300054x
    DOI: 10.1016/j.enpol.2023.113469
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