Energy-related uncertainty, financial regulations, and environmental sustainability in the United States

Muhammad Saeed Meo, Alade Ayodeji Ademokoya, Attahir B. Abubakar*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

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.
Original languageEnglish
Number of pages20
JournalClean Technologies and Environmental Policy
DOIs
Publication statusPublished - 9 Aug 2024

Keywords

  • SDGs
  • financial regulations
  • energy uncertainty
  • CO2 emissions
  • climate change
  • United States

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