TY - JOUR
T1 - Energy-related uncertainty, financial regulations, and environmental sustainability in the United States
AU - Meo, Muhammad Saeed
AU - Ademokoya, Alade Ayodeji
AU - Abubakar, Attahir B.
PY - 2024/8/9
Y1 - 2024/8/9
N2 - The United States has been classified as being "insufficient" by the Climate Action Tracker (CAT), indicating that current actions and policies fall short of addressing critical environmental challenges. This suggests the need for enhancing the existing policy measures for improving environmental sustainability. To this end, this study investigates the time-varying impact of energy-related uncertainty and financial regulations on sectoral CO2 emissions in the United States. The bootstrap rolling-window Granger causality approach is employed to examine quarterly data spanning 1990Q1 to 2021Q4. The estimation results reveal that energy-related uncertainty increases CO2 emissions in the transportation, residential, manufacturing and construction sectors. On the other hand, financial regulations are found to reduce CO2 emissions across the agricultural, transportation, residential, manufacturing, and construction sectors. The findings suggest the need for enhanced policy measures to improve energy stability and strengthen financial regulations focusing on climate-related disclosures and facilitating investments in low-carbon initiatives.
AB - The United States has been classified as being "insufficient" by the Climate Action Tracker (CAT), indicating that current actions and policies fall short of addressing critical environmental challenges. This suggests the need for enhancing the existing policy measures for improving environmental sustainability. To this end, this study investigates the time-varying impact of energy-related uncertainty and financial regulations on sectoral CO2 emissions in the United States. The bootstrap rolling-window Granger causality approach is employed to examine quarterly data spanning 1990Q1 to 2021Q4. The estimation results reveal that energy-related uncertainty increases CO2 emissions in the transportation, residential, manufacturing and construction sectors. On the other hand, financial regulations are found to reduce CO2 emissions across the agricultural, transportation, residential, manufacturing, and construction sectors. The findings suggest the need for enhanced policy measures to improve energy stability and strengthen financial regulations focusing on climate-related disclosures and facilitating investments in low-carbon initiatives.
KW - SDGs
KW - financial regulations
KW - energy uncertainty
KW - CO2 emissions
KW - climate change
KW - United States
U2 - 10.1007/s10098-024-02961-5
DO - 10.1007/s10098-024-02961-5
M3 - Article
SN - 1618-954X
JO - Clean Technologies and Environmental Policy
JF - Clean Technologies and Environmental Policy
ER -