Decarbonizing the U.S economy: the roles of renewable energy, technology innovation, human capital, and green growth

Achieving sustainable development requires bridging the gap among economic advancement and carbon dioxide emissions (CO2e). The influence of renewable energy, technological innovation, human capital, and green growth on rebalancing environmental conditions is a topic of considerable discussion in numerous forums. This research aims to demonstrate the effectiveness of the above-mentioned indicators in promoting sustainable development and reducing CO2e in the United States (USA). Using a wavelet coherence approach from 1990 to 2018, the results demonstrate that renewable energy indirectly correlates with CO2e on a scale of 1-20, indicating its role in promoting environmental sustainability in the USA. Simultaneously, green growth has a direct influence on CO2e from 1998 to 2002 and an indirect association on a scale of 1-4 post-2018. From 1998 to 2014, an adverse coherence exists between human capital and CO2e; however, from 2014 to 2018, the coherence between these variables remains negative but is comparatively low within a time scale of 16-24. The findings from the spectral causality approach demonstrate that human capital and GDP are robust predictors of CO2e; however, renewable energy, technological innovation, and green growth have a lesser negative association with emissions. The results further indicate that technological innovation and economic growth contribute to increased CO2e; however, renewable energy, human capital, and green growth reduce CO2e in the USA. The study'[s outcomes offer significant policy implications aimed at advancing renewable energy, encouraging green growth, fostering technological innovation, and leveraging human capital to attain environmental sustainability and reduce emissions in the USA within a low-carbon economy framework. Furthermore, it is argued that long-term dedication and joint efforts are required for these tactics to be effectively implemented.

Journal

CLEAN TECHNOLOGIES AND ENVIRONMENTAL POLICY

Year

2025

Volume

27

Issue

11

Pages

7395-7415

ISSN

1618-954X

eISSN

1618-9558

DOI

10.1007/s10098-025-03283-w

WoS UID

WOS:001544200600001