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Sustainable finance and renewable energy: Promoters of carbon neutrality in the United States.
- Source :
-
Journal of Environmental Management . Dec2022, Vol. 324, pN.PAG-N.PAG. 1p. - Publication Year :
- 2022
-
Abstract
- This investigation explores whether sustainable finance and renewable energy could facilitate U.S. carbon neutrality. We perform the time-varying parameter-stochastic volatility-vector auto-regression (TVP-SV-VAR) model to obtain the changing relations among U.S. sustainable finance (SF), renewable energy (RE) and carbon dioxide emission (CO2). The empirical outcomes reveal a short-term negative effect from RE to CO2, indicating that renewable energy consumption could promote U.S. carbon neutrality. This effect is asymmetrical, and it could be observed that RE increase has a greater effect on CO2 than RE reduction. Also, the development of sustainable finance could facilitate U.S. carbon neutrality, and the direct impact is longer and more significant than RE, but the indirect effect of SF on CO2 by influencing RE is hysteretic. Besides, the asymmetric effect reveals that the negative direct impact of SF increase on CO2 is smaller than SF reduction, and the latter's indirect effect is more rapid than the former. Against the backdrop of global warming and frequent extreme weather, the above conclusions have meaningful practical applications for the U.S. to achieve carbon neutrality targets through developing sustainable finance and renewable energy. [Display omitted] • This paper explores the effects of SF and RE on U.S. carbon neutrality. • The facilitation of SF on U.S. carbon neutrality is more influential than that of RE. • There is a hysteretic indirect effect of SF on CO2 by influencing RE. • The negative effect of RE reduction on CO2 is smaller than that of RE increase. • The direct and indirect effects of SF on CO2 are asymmetric. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03014797
- Volume :
- 324
- Database :
- Academic Search Index
- Journal :
- Journal of Environmental Management
- Publication Type :
- Academic Journal
- Accession number :
- 159994379
- Full Text :
- https://doi.org/10.1016/j.jenvman.2022.116390