Search

This paper examines the effect of renewable energy consumption, electricity demand, sustainable economic growth and carbon dioxide (CO2) emissions on international trade in the countries of U.S. - Mexico - Canada Agreement (USMCA). To do this, unit root, cointegration and causality tests are applied, and the long-term relationship between the variables is estimated. The results suggest that the variables are integrated of different order and that there is a long-term equilibrium relationship between them. There is a positive relationship between the consumption of renewable energy, the demand for electrical energy and sustainable economic growth on international trade, while CO2 emissions reduce it. This implies that it is important to analyze energy policies that encourage increased consumption of renewable energy to boost international trade, in order to accelerate sustainable economic growth in the region. In addition, the feedback relationship between CO2 emissions and the demand for electrical energy could have important implications within the energy and environmental policy for the panel of countries in the region. [ABSTRACT FROM AUTHOR]