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Government-financed energy R&D and fossil energy consumption: a time-series analysis for the United States

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  • Herzer, Dierk

Abstract

We examine the long-run impact of publicly financed energy R&D on fossil energy consumption in the United States, using four measures of government-supported energy R&D: overall government-financed energy R&D, government support for energy efficiency R&D, public expenditures for nuclear energy R&D, and government-financed renewable energy R&D. Applying cointegration techniques to data from 1984 to 2023, we find that government-financed energy efficiency R&D and nuclear energy R&D do not significantly affect fossil energy consumption in the long run. In contrast, overall publicly financed energy R&D and government-financed renewable energy R&D have a measurable negative long-run effect on fossil fuel energy consumption.

Suggested Citation

  • Herzer, Dierk, 2025. "Government-financed energy R&D and fossil energy consumption: a time-series analysis for the United States," Finance Research Letters, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006622
    DOI: 10.1016/j.frl.2025.107402
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    References listed on IDEAS

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    1. Liu, Zongang & Wu, Yongmin, 2025. "Digital fiscal system and ecological environment," International Review of Financial Analysis, Elsevier, vol. 105(C).

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