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Environmental Regulations and Carbon Emissions: The Role of Renewable Energy Research and Development Expenditures

Author

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  • Yinying Tao

    (School of Design and Fashion, Zhejiang University of Science and Technology, Hangzhou 310023, China)

  • Mehmet Akif Destek

    (Department of Economics, Gaziantep University, Gaziantep 27410, Turkey
    Adnan Kassar School of Business, Lebanese American University, Beirut P.O. Box 13-5053, Lebanon)

  • Ugur Korkut Pata

    (Adnan Kassar School of Business, Lebanese American University, Beirut P.O. Box 13-5053, Lebanon
    Department of Economics, Osmaniye Korkut Ata University, Osmaniye 80000, Turkey)

  • Zeeshan Khan

    (Faculty of Business, Curtin University, Bentley, WA 6102, Australia)

Abstract

This present research offers fresh insights regarding the causality nexus between environmental regulations and a sustainable environment. Also, this study considered the importance of renewable energy research and development (RERD), technological innovation (TI), and economic growth (GDP). Using the U.S. extended dataset covering the period 1990–2020; this research employed the wavelet methods (wavelet power spectrum and wavelet coherence) to observe the causal connections between mentioned variables based on the time-frequency domain. The empirical results from the wavelet power spectrum asserted that carbon emissions (CO 2 ), RERD, and TI are vulnerable during the study period, while GDP and environmental policies are stable. Additionally, the wavelet coherence approach unveils relationships both in-phase and anti-phase. A causal connection is evident between CO 2 and other variables. Particularly, a unidirectional causality is found from TI to CO 2 emissions, while a bidirectional causal association exists between GDP and CO 2 , and environmental policy stringency, and CO 2 . Moreover, a bidirectional causality exists between RERD and CO 2 , but this association is insignificant. Based on findings, this research suggests enhancing RERD investment, strengthening environmental regulations, and promoting green technological innovation to attain a sustainable environment.

Suggested Citation

  • Yinying Tao & Mehmet Akif Destek & Ugur Korkut Pata & Zeeshan Khan, 2023. "Environmental Regulations and Carbon Emissions: The Role of Renewable Energy Research and Development Expenditures," Sustainability, MDPI, vol. 15(18), pages 1-16, September.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:18:p:13345-:d:1234098
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    References listed on IDEAS

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    1. Alexey Cherepovitsyn & Gennady Stroykov & Alexander Nevolin, 2023. "Efficiency of Low-Carbon Technologies Implementation at Non-Ferrous Metallurgy Enterprises under the Conditions of Carbon-Regulation Development in Russia," Sustainability, MDPI, vol. 15(24), pages 1-22, December.

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