Uncovering asymmetric energy impacts on carbon emissions and economic growth: Evidence from the U.S. energy market

This study examines the heterogeneous and asymmetric relationships between energy consumption, CO2 emissions, and economic growth within the U.S. energy market. Using high-frequency monthly data from February 1992 to May 2024, the analysis employs advanced econometric techniques, including multivariate quantile-on-quantile regression and quantile autoregressive distributed lag models, to explore how renewable and non-renewable energy sources shape economic and environmental outcomes across varying conditions. Results reveal that solar and wind energy significantly reduce CO2 emissions and support GDP growth, particularly during periods of heightened economic activity and strong policy support. In contrast, biomass and hydropower show mixed effects, highlighting the need for efficiency improvements and technological advancements. Fossil fuels and coal remain dominant contributors to emissions, while natural gas and nuclear energy emerge as transitional and low-emission alternatives. These findings emphasize the importance of adaptive energy policies that balance short-term economic stability with long-term sustainability goals. By analyzing 16 distinct energy sources, this study provides policymakers with data-driven insights to navigate the U.S. energy transition while advancing climate and economic objectives.