Skip to main content

Advertisement

Log in

Do renewable energy and natural gas consumption mitigate CO2 emissions in the USA? New insights from NARDL approach

  • Research in Environmental Planning and Management
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

This article attempts to explore the asymmetric impact of renewable energy and natural gas consumptions on CO2 emissions for the selected ten most populous states in the USA over the period from 1997 to 2017. For that purpose, the nonlinear autoregressive distributed lag (NARDL) estimation technique, developed by Shin et al. (2014), decomposes the consumption of renewable energy and natural gas into positive and negative changes. The cointegration test results indicate that renewable energy and natural gas consumptions have a long-run connection with CO2 emissions in the eight of states used in the study. Moreover, the results reveal that the long-run asymmetric impact of renewable energy and natural gas consumptions on CO2 emissions differs from state to state. Finally, the study provides several important policy suggestions, including reducing the CO2 emissions in the atmosphere.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Notes

  1. https://www.eia.gov/totalenergy/data/monthly/pdf/sec1.pdf

  2. According to World Population Reviews, the most ten populous states in the USA are ranked as follows: (1) California, (2) Texas, (3) Florida, (4) New York, (5) Pennsylvania, (6) Illinois, (7) Ohio, (8) Georgia, (9) North Carolina, and (10) Michigan.

  3. We excluded North Carolina and New Jersey from the analysis because of heteroscedasticity problem, and Washington is substituted.

References

  • Ahmad M, Khan Z, Rahman ZU, Khan S (2018) Does financial development asymmetrically affect CO2 emissions in China? An application of the nonlinear autoregressive distributed lag (NARDL) model. Carbon Management 9(6):631–644

    Article  CAS  Google Scholar 

  • Ahmad M, Khattak SI, Khan S, Rahman ZU (2020) Do aggregate domestic consumption spending & technological innovation affect industrialization in South Africa? An application of linear & non-linear ARDL models. Journal of Applied Economics 23(1):44–65

    Article  Google Scholar 

  • Apergis N, Payne JE, Menyah K, Wolde-Rufael Y (2010) On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics 69(11):2255–2260

    Article  Google Scholar 

  • Aslan A, Ocal O (2016) The role of renewable energy consumption in economic growth: evidence from asymmetric causality. Renewable and Sustainable Energy Reviews 60:953–959

    Article  Google Scholar 

  • Bhattacharya M, Churchill SA, Paramati SR (2017) The Dynamic Impact of Renewable Energy and Institutions on Economic Output and CO2 Emissions across Regions. Renewable Energy 111:157–167

    Article  Google Scholar 

  • Bilgili F, Koçak E, Bulut Ü (2016) The dynamic impact of renewable energy consumption on CO2 emissions: a revisited environmental Kuznets curve approach. Renewable and Sustainable Energy Reviews 54:38–845

    Article  Google Scholar 

  • Brown RL, Durbin J, Evans JM (1975) Techniques for testing the constancy of regression relationships over time. Journal of the Royal Statistical Society, Series B 37:149–192

    Google Scholar 

  • Dogan E, Ozturk I (2017) The influence of renewable and non-renewable energy consumption and real income on CO emissions in the USA: evidence from structural break tests. Environmental Science & Pollution Research 24(11):10846–10854

    Article  Google Scholar 

  • Dong K, Sun R, Hochman G (2017a) Do natural gas and renewable energy consumption lead to less CO2 emission? Empirical evidence from a panel of BRICS countries. Energy 141:1466–1478

    Article  Google Scholar 

  • Dong K, Sun R, Hochman G, Zeng X, Li H, Jiang H (2017b) Impact of natural gas consumption on CO2 emissions: panel data evidence from China’s provinces. Journal of Cleaner Production 162:400–410

    Article  Google Scholar 

  • Dong K, Sun R, Li H, Liao H (2018) Does natural gas consumption mitigate CO2 emissions: testing the environmental Kuznets curve hypothesis for 14 Asia-Pacific countries. Renewable and Sustainable Energy Reviews 94:419–429

    Article  Google Scholar 

  • Ergun SJ, Owusu PA, Rivas MF (2019) Determinants of renewable energy consumption in Africa. Environment Science and Pollution Research 26:15390–15405

    Article  Google Scholar 

  • Isik C, Serdar O, Dilek Ö (2019) The economic growth/development and environmental degradation: evidence from the US state-level EKC hypothesis. Environmental Science and Pollution Research 26:30772–33078

    Article  Google Scholar 

  • Jaforullah M, King A (2015) Does the use of renewable energy sources mitigate CO2 emissions? A reassessment of the US evidence. Energy Economics 49:711–717

    Article  Google Scholar 

  • Johnson TL, Keith DW (2014) Fossil electricity and CO2 sequestration: how natural gas prices, initial conditions and retrofits determine the cost of controlling CO2 emissions. Energy Policy 32(3):367–382

    Article  Google Scholar 

  • Joskow PL (2013) Natural gas: from shortages to abundance in the United States. American Economic Review 103(3):338–343

    Article  Google Scholar 

  • Katrakilidis C, Trachanas E (2012) What drives housing price dynamics in Greece: new evidence from asymmetric ARDL cointegration. Economic Modelling 29(4):1064–1069

    Article  Google Scholar 

  • Khan Z, Sisi Z, Siqun Y (2019) Environmental regulations an option: asymmetry effect of environmental regulations on carbon emissions using non-linear ARDL. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects 41(2):137–155

    Article  CAS  Google Scholar 

  • Koutroulis A, Panagopoulos Y, Tsouma E (2016) Asymmetry in the response of unemployment to output changes in Greece: evidence from hidden co-integration. The Journal of Economic Asymmetries 13:81–88

    Article  Google Scholar 

  • Mahmood N, Wang Z, Hassan ST (2019) Renewable energy, economic growth, human capital, CO2 emission: an empirical analysis. Environment Science and Pollution Research 26:20619-20630

  • McDermott J, McMenamin P (2008) Assessing inflation targeting in Latin America with a DSGE model. (Central Bank of Chile Working Papers, No 469). Chile: Central Bank of Chile

  • Menyah K, Wolde-Rufael Y (2010) CO2 emissions, nuclear energy, renewable energy and economic growth in the US. Energy Policy 38(6):2911–2915

    Article  CAS  Google Scholar 

  • Narayan P (2005) The Saving and Investment Nexus for China: evidence from Cointegration tests. Applied Economics 37(17):1979–1990

    Article  Google Scholar 

  • Ouattara B (2004) Foreign aid and fiscal policy in Senegal. Mimeo University of Manchester, Manchester

    Google Scholar 

  • Ouyang Y, Li P (2018) On the nexus of financial development, economic growth, and energy consumption in China: New perspective from a GMM panel VAR approach. Energy Economics 71:238–252

    Article  Google Scholar 

  • Pesaran MH, Pesaran B (1999) Working with Microfit 4.0: interactive econometric analysis. Oxford University Press, Oxford.

  • Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing aproaches to the analysis of level relationships. J. Appl. Econometrics 16(3):289–326

    Article  Google Scholar 

  • Podesta JD, Wirth TE (2009) Natural gas: a bridge fuel for the 21st century. Center for American Progress

    Google Scholar 

  • Romero AM (2005) Comparative study: factors that affect foreign currency reserves in China and India. Honors projects (Paper 33). United States: Illinois Wesleyan University

  • Sbia R, Shahbaz M, Hamdi H (2014) A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE. Economic Modelling 36:191–197

    Article  Google Scholar 

  • Shafiei S, Salim RA (2014) Non-renewable and renewable energy consumption and CO2 emissions in OECD countries: a comparative analysis. Energy Policy 66:547–556

    Article  CAS  Google Scholar 

  • Shahbaz M (2017) Current issues in time-series analysis for the energy-growth nexus; asymmetries and nonlinearities case study: Pakistan. MPRA Paper 82221, University Library of Munich, Germany

  • Shearer C, Bistline J, Inman M, Davis SJ (2014) The effect of natural gas supply on US renewable energy and CO2 emissions. Environmental Research Letters 9(9):094008

    Article  CAS  Google Scholar 

  • Shin Y, Yu B, Greenwood-Nimmo M (2014) Modelling asymmetric cointegration and dynamic multipliers in a nonlinear ardl framework. In: Horrace W, Sickles R (eds) The Festschrift in Honor of Peter Schmidt: Econometric Methods and Applications. Springer, New York, pp 281–314

    Chapter  Google Scholar 

  • Solarin SA, Lean HH (2016) Natural gas consumption, income, urbanization, and CO2 emissions in China and India. Environ Sci Pollut Res 23(18):18753–18765

    Article  CAS  Google Scholar 

  • Ullah A, Zhao X, Kamal MA, Zheng J (2020) Modelling the relationship between military spending and stock market development (a) symmetrically in China: An empirical analysis via the NARDL approach. Physica A: Statistical Mechanics and its Applications 554:124106

    Article  Google Scholar 

  • Ummalla M, Samal A (2019) The impact of natural gas and renewable energy consumption on CO2 emissions and economic growth in two major emerging market economies. Environment Science and Pollution Research 26:20893–20907

    Article  CAS  Google Scholar 

  • Xu H (2016) Linear and nonlinear causality between renewable energy consumption and economic growth in the USA. Journal of Economics and Business 34(2):309–332

    Google Scholar 

Download references

Acknowledgments

This paper was initially presented at the International Conference on Economics, Energy and Environment, June 25–27, 2020, Cappadocia, Nevsehir, Turkey. The authors are grateful to the editor and anonymous referees of the journal for their extremely useful suggestions to improve the quality of the article. We are solely responsible for all errors.

Author information

Authors and Affiliations

Authors

Contributions

Ferhat Çıtak: Supervision, writing - original draft, review and editing, validation, resources.

Hakan Uslu: writing - original draft, review and editing.

Oğuzhan Batmaz: writing - original draft, review and editing.

Safa Hoş: writing - original draft, review and editing.

Corresponding author

Correspondence to Ferhat Çıtak.

Ethics declarations

Conflict of interests

The authors declare that they have no conflict of interest.

Research data for this article

Not applicable.

Additional information

Responsible Editor: Nicholas Apergis

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Çıtak, F., Uslu, H., Batmaz, O. et al. Do renewable energy and natural gas consumption mitigate CO2 emissions in the USA? New insights from NARDL approach. Environ Sci Pollut Res 28, 63739–63750 (2021). https://doi.org/10.1007/s11356-020-11094-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-020-11094-3

Keywords

Navigation