Monetary policy and renewable energy production

Shiu-Sheng Chen and Tzu-Yu Lin

Energy Economics, 2024, vol. 132, issue C

Abstract: This paper examines the relationship between monetary policy and renewable energy. Using US quarterly data from 1990:Q1 to 2023:Q2, we employ a stylized monetary policy structural vector autoregressive model and provide evidence that monetary tightening reduces the production of renewable energy. Among different sources of renewable energy, solar energy shows the most significant response. Finally, a counterfactual policy analysis provides evidence that monetary policy can either offset or exaggerate other structural shocks on renewable energy production, depending on the sources of these shocks.

Keywords: Renewable energy production; Monetary policy (search for similar items in EconPapers)
JEL-codes: E43 E52 Q20 Q43 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:132:y:2024:i:c:s0140988324002032

DOI: 10.1016/j.eneco.2024.107495

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