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Examining the Role of Renewable Energy, Technological Innovation, and the Insurance Market in Environmental Sustainability in the United States: A Step toward COP26 Targets

Author

Listed:
  • Ahmed Samour

    (Accounting Department, Dhofar University, Salalah 211, Oman)

  • Usman Mehmood

    (Department of Political Science, University of Management and Technology, Lahore 54792, Pakistan
    Remote Sensing, GIS and Climatic Research Lab (National Center of GIS and Space Applications), Centre for Remote Sensing, University of the Punjab, Lahore 54590, Pakistan)

  • Magdalena Radulescu

    (Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania
    Institute of Doctoral and Post-Doctoral Studies, University Lucian Blaga of Sibiu, 550024 Sibiu, Romania)

  • Radu Alexandru Budu

    (Academy of Economic Studies, Faculty of Theoretical and Applied Economy, 010374 Bucharest, Romania)

  • Rares Mihai Nitu

    (Academy of Economic Studies, Faculty of Theoretical and Applied Economy, 010374 Bucharest, Romania)

Abstract

Investigating the determinants of environmental sustainability has become a very attractive and popular area of research in response to the United Nations’ sustainable development goals (SDGs) and COP26 targets. Against this backdrop, this paper aims to explore the effects of renewable energy, technological innovation, and the insurance market on environmental sustainability in the United States (US). This work contributes to the extant body of knowledge by exploring the effect of the insurance market on the load capacity factor (LC), specifically regarding the US. The LC tracks a certain ecological threshold by simultaneously comparing biocapacity and ecological footprint (EF), thereby providing a comprehensive empirical analysis of ecological sustainability determinants. However, this proxy includes the combined attributes of the demand and supply sides of ecological sustainability. Using the recently developed autoregressive distributed lag method, this research reveals that the insurance market adversely affects the LC in the US. The overall outcomes highlight the positive role of renewable energy, technological innovation, and the insurance market in achieving the SDGs and COP26 targets. Policy recommendations for policymakers concerning promoting renewable energy, green innovation activities, the green insurance market, and ecological regulations are also discussed.

Suggested Citation

  • Ahmed Samour & Usman Mehmood & Magdalena Radulescu & Radu Alexandru Budu & Rares Mihai Nitu, 2023. "Examining the Role of Renewable Energy, Technological Innovation, and the Insurance Market in Environmental Sustainability in the United States: A Step toward COP26 Targets," Energies, MDPI, vol. 16(17), pages 1-15, August.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:17:p:6138-:d:1223391
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