Assessing the Sectoral Impact of Renewable Energy Adoption on CO2 Emissions in the United States

Coolin-Campbell M. Zor (), Elvis Alade (), Blanche Brinda Yougang () and Charles Bom
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Coolin-Campbell M. Zor: Department of Economics and Finance, University of North Dakota, Grand Forks, North Dakota, USA
Elvis Alade: Department of Economics and Finance, University of North Dakota, Grand Forks, North Dakota, USA
Blanche Brinda Yougang: Department of Economics and Finance, University of North Dakota, Grand Forks, North Dakota, USA

International Journal of Energy Economics and Policy, 2025, vol. 15, issue 4, 323-337

Abstract: This paper presents an assessment of renewable and fossil fuel consumption on CO? emissions of major polluting sectors in the United States using an Autoregressive Distributed Lag Error Correction Model (ARDL-ECM). The results show that renewable energy reduces emissions in the long-run, though?short-run effects vary by sector due to integration challenges. The production and consumption of fossil fuels remain a dominant driver of emissions, particularly in the industrial, transportation, and electric power sectors. Energy prices also play a critical role: while higher electricity prices promote efficiency, elevated crude?oil prices are associated with sustained emissions. Industry-specific dynamics emphasize the need for targeted policies such as investments in modernizing the grid, industrial energy efficiency and adoption of electric vehicles. While the renewable transition aligns with economic growth, ensuring equitable access and adapting the technology in the face of change is a daunting task. These results also highlight the importance of adaptive sectoral approaches that help align decarbonization objectives with?economic sustainability, ensuring a just and effective energy transition in the United States.

Keywords: Renewable Energy; Fossil Fuels Consumption; CO2 Emissions; Energy Transition; Electricity Generation; Energy Pricing (search for similar items in EconPapers)
Date: 2025
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DOI: 10.32479/ijeep.19623

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