The relationships between renewable energy, net energy imports, arms exports, and military expenditures in the USA

Slim Ben Youssef

MPRA Paper from University Library of Munich, Germany

Abstract: We evaluate the relationships between renewable energy consumption, net energy imports, military expenditures, arms exports, gross domestic product, and carbon dioxide emissions by using annual data about the USA during the period 1980-2016. The autoregressive distributed lag approach and the vector error correction model are used. Long-run unidirectional causalities are running from all considered variables to net energy imports and arms exports. We show that arms exports have a positive long-run effect on both renewable energy consumption and on net energy imports. Military expenditures have a positive long-term effect on renewable energy consumption, but they have a negative long-term effect on net energy imports. We recommend that the United States should prefer to export sophisticated weapons to its allies rather than intervene directly and militarily in the event it should secure its supply of imported fossil fuels; we also recommend increasing the R&D budget of the US Department of Defense allocated to innovations in renewable energies.

Keywords: Renewable energy; net energy imports; arms exports; military expenditures; autoregressive distributed lag; USA. (search for similar items in EconPapers)
JEL-codes: C32 H56 O51 Q42 (search for similar items in EconPapers)
Date: 2020-11-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:110959

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