Linking of bio-energy and carbon neutrality: Navigating economic policy uncertainty and climate change policy in the USA

Uzma Kashif, Sohail Abbas, Shazia Kousar and Heli Lu

Energy, 2025, vol. 324, issue C

Abstract: This study aims to explain the role of bioenergy production in carbon neutral economy in United State America. This study utilized bioenergy (BIOE), economic policy uncertainty, climate change policy, and natural resources as explanatory variable while carbon neutrality or zero carbon emission is used as response variable. The data has been collected from World Bank for the period of 2000–2023. Moreover, this study employed an autoregressive distributed lag (ARDL) model to investigate the long-term relationship between carbon neutrality and net-zero emissions based on bioenergy, climate change policy, economic policy uncertainty, and natural resources. The results indicate that bioenergy consumption significantly decrease carbon emission and increase carbon neutrality. The economic policy uncertainty positively influences carbon emission, so as economic policy uncertainty decreases, it will cause to decrease carbon emission and increases carbon neutrality. Similarly, climate change policy significantly lowers the carbon emission and increases carbon neutrality. Same in line as natural resources depletion increases; it will cause to increase carbon emission and decreases carbon neutrality. Moreover, this study suggests that USA policy makers should keenly observe the development and implementation of the policies designed to achieve carbon free economy till 2050.

Keywords: Net zero emissions; Carbon neutrality; Climate change policy; Bio-energy; Natural resources; Economic policy uncertainty (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:324:y:2025:i:c:s0360544225016548

DOI: 10.1016/j.energy.2025.136012

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