Examining the Role of Renewable Energy, Technological Innovation, and the Insurance Market in Environmental Sustainability in the United States: A Step toward COP26 Targets

Ahmed Samour, Usman Mehmood, Magdalena Radulescu (), Radu Alexandru Budu and Rares Mihai Nitu
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Ahmed Samour: Accounting Department, Dhofar University, Salalah 211, Oman
Usman Mehmood: Department of Political Science, University of Management and Technology, Lahore 54792, Pakistan
Magdalena Radulescu: Department of Finance, Accounting and Economics, University of Pitesti, 110040 Pitesti, Romania
Radu Alexandru Budu: Academy of Economic Studies, Faculty of Theoretical and Applied Economy, 010374 Bucharest, Romania
Rares Mihai Nitu: Academy of Economic Studies, Faculty of Theoretical and Applied Economy, 010374 Bucharest, Romania

Energies, 2023, vol. 16, issue 17, 1-15

Abstract: Investigating the determinants of environmental sustainability has become a very attractive and popular area of research in response to the United Nations’ sustainable development goals (SDGs) and COP26 targets. Against this backdrop, this paper aims to explore the effects of renewable energy, technological innovation, and the insurance market on environmental sustainability in the United States (US). This work contributes to the extant body of knowledge by exploring the effect of the insurance market on the load capacity factor (LC), specifically regarding the US. The LC tracks a certain ecological threshold by simultaneously comparing biocapacity and ecological footprint (EF), thereby providing a comprehensive empirical analysis of ecological sustainability determinants. However, this proxy includes the combined attributes of the demand and supply sides of ecological sustainability. Using the recently developed autoregressive distributed lag method, this research reveals that the insurance market adversely affects the LC in the US. The overall outcomes highlight the positive role of renewable energy, technological innovation, and the insurance market in achieving the SDGs and COP26 targets. Policy recommendations for policymakers concerning promoting renewable energy, green innovation activities, the green insurance market, and ecological regulations are also discussed.

Keywords: COP26; renewable energy; insurance market; load capacity factor; ARDL (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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