IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v324y2025ics0360544225016548.html

Linking of bio-energy and carbon neutrality: Navigating economic policy uncertainty and climate change policy in the USA

Author

Listed:
  • Kashif, Uzma
  • Abbas, Sohail
  • Kousar, Shazia
  • Lu, Heli

Abstract

This study aims to explain the role of bioenergy production in carbon neutral economy in United State America. This study utilized bioenergy (BIOE), economic policy uncertainty, climate change policy, and natural resources as explanatory variable while carbon neutrality or zero carbon emission is used as response variable. The data has been collected from World Bank for the period of 2000–2023. Moreover, this study employed an autoregressive distributed lag (ARDL) model to investigate the long-term relationship between carbon neutrality and net-zero emissions based on bioenergy, climate change policy, economic policy uncertainty, and natural resources. The results indicate that bioenergy consumption significantly decrease carbon emission and increase carbon neutrality. The economic policy uncertainty positively influences carbon emission, so as economic policy uncertainty decreases, it will cause to decrease carbon emission and increases carbon neutrality. Similarly, climate change policy significantly lowers the carbon emission and increases carbon neutrality. Same in line as natural resources depletion increases; it will cause to increase carbon emission and decreases carbon neutrality. Moreover, this study suggests that USA policy makers should keenly observe the development and implementation of the policies designed to achieve carbon free economy till 2050.

Suggested Citation

  • Kashif, Uzma & Abbas, Sohail & Kousar, Shazia & Lu, Heli, 2025. "Linking of bio-energy and carbon neutrality: Navigating economic policy uncertainty and climate change policy in the USA," Energy, Elsevier, vol. 324(C).
    • Handle: RePEc:eee:energy:v:324:y:2025:i:c:s0360544225016548
    DOI: 10.1016/j.energy.2025.136012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544225016548
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2025.136012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Nakhli, Mohamed Sahbi & Shahbaz, Muhammad & Ben Jebli, Mehdi & Wang, Shizhen, 2022. "Nexus between economic policy uncertainty, renewable & non-renewable energy and carbon emissions: Contextual evidence in carbon neutrality dream of USA," Renewable Energy, Elsevier, vol. 185(C), pages 75-85.
    2. Weißbach, D. & Ruprecht, G. & Huke, A. & Czerski, K. & Gottlieb, S. & Hussein, A., 2013. "Energy intensities, EROIs (energy returned on invested), and energy payback times of electricity generating power plants," Energy, Elsevier, vol. 52(C), pages 210-221.
    3. Matamala, Yolanda & Flores, Francisco & Arriet, Andrea & Khan, Zarrar & Feijoo, Felipe, 2023. "Probabilistic feasibility assessment of sequestration reliance for climate targets," Energy, Elsevier, vol. 272(C).
    4. Matteo Muratori & Nico Bauer & Steven K. Rose & Marshall Wise & Vassilis Daioglou & Yiyun Cui & Etsushi Kato & Matthew Gidden & Jessica Strefler & Shinichiro Fujimori & Ronald D. Sands & Detlef P. Vuu, 2020. "EMF-33 insights on bioenergy with carbon capture and storage (BECCS)," Climatic Change, Springer, vol. 163(3), pages 1621-1637, December.
    5. Raquel Balanay & Anthony Halog, 2024. "Bioenergy updates and prospects for decarbonization in the ASEAN region: A review on logistical concerns and potential solutions," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 13(1), January.
    6. Xu Deng & Fei Teng & Minpeng Chen & Zhangliu Du & Bin Wang & Renqiang Li & Pan Wang, 2024. "Exploring negative emission potential of biochar to achieve carbon neutrality goal in China," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    7. Torkayesh, Ali Ebadi & Venghaus, Sandra, 2024. "Decoding the transport policy maze towards climate neutrality: Cross-sectoral policy landscapes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 206(C).
    8. Seema Narayan & Paresh Kumar Narayan, 2005. "An empirical analysis of Fiji's import demand function," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 32(2), pages 158-168, April.
    9. Zhang, Zhenhua & Li, Peixuan & Wang, Xinyi & Ran, Rong & Wu, Wenshuai, 2024. "New energy policy and new quality productive forces: A quasi-natural experiment based on demonstration cities," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 1670-1688.
    10. Eggert, Anthony, 2007. "Transportation Biofuels in the US A Preliminary Innovation Systems Analysis," Institute of Transportation Studies, Working Paper Series qt9bn042nh, Institute of Transportation Studies, UC Davis.
    11. Zivot, Eric & Andrews, Donald W K, 2002. "Further Evidence on the Great Crash, the Oil-Price Shock, and the Unit-Root Hypothesis," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 25-44, January.
    12. Eggert, Anthony, 2007. "Transportation Biofuels in the USA Preliminary Innovation Systems Analysis," Institute of Transportation Studies, Working Paper Series qt5n51r9n8, Institute of Transportation Studies, UC Davis.
    13. Felipe Feijoo & Gokul Iyer & Matthew Binsted & James Edmonds, 2020. "US energy system transitions under cumulative emissions budgets," Climatic Change, Springer, vol. 162(4), pages 1947-1963, October.
    14. Zhang, Zhenhua & Luo, Cong & Zhang, Guoxing & Shu, Yuqin & Shao, Shuai, 2024. "New energy policy and green technology innovation of new energy enterprises: Evidence from China," Energy Economics, Elsevier, vol. 136(C).
    15. Gilbert Ahamer, 2022. "Why Biomass Fuels Are Principally Not Carbon Neutral," Energies, MDPI, vol. 15(24), pages 1-39, December.
    16. Zhang, Zhenhua & Wu, Huangbin & Zhang, Yunpeng & Hu, Shilei & Pan, Yuxi & Feng, Yanchao, 2024. "Does digital global value chain participation reduce energy resilience? Evidence from 49 countries worldwide," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ting Wang & Chi‐Wei Su & Hsuling Chang & Oana‐Ramona Lobonţ, 2026. "Green Finance Under Climate Risks: A Comparative Analysis of Hedging Effects Between Green Bonds and Green Stocks," Australian Economic Papers, Wiley Blackwell, vol. 65(1), pages 83-93, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Feijoo, Felipe & Flores, Francisco & Kundu, Abhishake & Pfeifer, Antun & Herc, Luka & Prieto, Ana L. & Duic, Neven, 2025. "Tradeoffs between economy wide future net zero and net negative economy systems: The case of Chile," Renewable and Sustainable Energy Reviews, Elsevier, vol. 207(C).
    2. Flores, Francisco & Feijoo, Felipe & DeStephano, Paelina & Herc, Luka & Pfeifer, Antun & Duić, Neven, 2024. "Assessment of the impacts of renewable energy variability in long-term decarbonization strategies," Applied Energy, Elsevier, vol. 368(C).
    3. Zhou, Jing & Zhang, Yixiang & Li, Junyi, 2025. "Motivating innovative energy-saving behavior among factory workers: The role of enterprise climates and rewards," Energy, Elsevier, vol. 326(C).
    4. Qi, Qiao & Du, Xiaojun & Hou, Yingying & Li, Zhitang, 2025. "Planning a clean future: energy policy communication and energy technology innovation," Energy, Elsevier, vol. 335(C).
    5. Xuefei Zhao & Biyi Zhou & Qianling Zhou, 2025. "The Impact of Environmental Incentive Policies on the Value of New Energy Enterprises—Evidence from China’s New Energy Demonstration Cities," Sustainability, MDPI, vol. 17(19), pages 1-35, September.
    6. Lei, Yifei & Botero, Hernan & Zhang, Riqi & Zhang, Junhao, 2025. "The impact of different environmental premium mechanisms on investment decisions in photovoltaic power generation projects: evidence from China," Energy, Elsevier, vol. 336(C).
    7. Matamala, Yolanda & Flores, Francisco & Arriet, Andrea & Khan, Zarrar & Feijoo, Felipe, 2023. "Probabilistic feasibility assessment of sequestration reliance for climate targets," Energy, Elsevier, vol. 272(C).
    8. Frederic L. Pryor, 2009. "The Economics Of Gasohol," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 523-537, October.
    9. Lu, Jian & Wang, Congcong & Xie, Tangkun & Zhang, Xueying, 2025. "FinTech and corporate pollution reduction," Research in International Business and Finance, Elsevier, vol. 80(C).
    10. Ye, Maoran & Tang, Ling & Huang, Lin & Li, Mei, 2023. "On conflict of natural resources-carbon emissions nexus in China: The role of economic policy uncertainty," Resources Policy, Elsevier, vol. 86(PB).
    11. Nakhli, Mohamed Sahbi & Gaies, Brahim & Hemrit, Wael & Sahut, Jean-Michel, 2024. "Twenty-year tango: Exploring the reciprocal influence of macro-financial instability and climate risks," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 717-731.
    12. Licandeo, Francisca & Flores, Francisco & Feijoo, Felipe, 2023. "Assessing the impacts of economy-wide emissions policies in the water, energy, and land systems considering water scarcity scenarios," Applied Energy, Elsevier, vol. 342(C).
    13. Yugang He, 2022. "Investigating the Routes toward Environmental Sustainability: Fresh Insights from Korea," Sustainability, MDPI, vol. 15(1), pages 1-17, December.
    14. Malefa Rose Malefane, 2023. "Dynamic Estimation of a Traditional Import Demand Function for Botswana," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 15(3), pages 436-448, September.
    15. Md. Shakhaowat Hossin & Md. Kaisar Hamid, 2024. "Capital Market Performance and Bangladesh’s Economy: An Empirical Study," Global Business Review, International Management Institute, vol. 25(2_suppl), pages 165-183, April.
    16. Zhang, Shaohui & Yu, Yongze & Li, Xiaofan & Peng, Wei & Tao, Yunqing, 2025. "The role of credit in business: Social credit and entrepreneurship in China," Economic Analysis and Policy, Elsevier, vol. 88(C), pages 1699-1719.
    17. Gaies, Brahim & Nakhli, Mohamed Sahbi & Ayadi, Rim & Sahut, Jean-Michel, 2022. "Exploring the causal links between investor sentiment and financial instability: A dynamic macro-financial analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 204(C), pages 290-303.
    18. Zhang, Xiaoyu & Huang, Qinghua & Shi, Peihao, 2025. "The comprehensive welfare effects of energy transition: Evidence from corporate ESG performance," Energy, Elsevier, vol. 339(C).
    19. Zhang, Xiaoqi & He, Yu, 2025. "Impact of national industrial transfer demonstration zones policy on high-quality economic development in China," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1179-1197.
    20. Tian, Yuqi & Wang, Xiaowen & Chen, Nanxu & Zhang, Zhenhua, 2026. "The impact of artificial intelligence technological innovation on global entrepreneurial activities," Socio-Economic Planning Sciences, Elsevier, vol. 103(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:324:y:2025:i:c:s0360544225016548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.