Navigating climate challenges: harnessing energy, eco-innovation, and climate policy in achieving sustainable development goals

Abstract

Carbon emissions cause climate change, a danger to society and the environment. Despite efforts, the US remains one of the largest carbon dioxide emitters, which may lead to rising seas, increased natural disasters, and ecological catastrophes. Therefore, we need policies that are immediately effective in preventing carbon emissions. In this perspective, this study scrutinizes the role of Energy Transition (E_T), Eco-Innovation (E_INO), Globalization (G_N), Sustainable Consumption (S_C), and Climate Policy Uncertainty (C_PU) on CO₂ emissions and Load Capacity Factor (L_CF) from 1980 to 2019. Utilizing cutting-edge econometric techniques includes dynamic Autoregressive Distributed Lag (ARDL) simulations and Cumulative Fourier Frequency Domain Causality (CFFDC). The results indicate that E_INO reduces emissions, while E_T and C_PU provide short-term reductions. Conversely, G_N and S_C shortly upsurge emissions, though S_C behaves differently under CFFDC analysis. The study also divulges bidirectional causality among most variables, with G_N and S_C significantly impacting L_CF in specific models. These findings underscore the importance of implementing targeted policies, such as carbon taxes, incentives for renewable energy adoption, and stringent emissions regulations, to achieve Sustainable Development Goals (SDGs) 7 and 13. In conclusion, such policy measures are critical for the United States to contribute effectively to global efforts to combat climate change.