Achieving SDGs 7, 8, and 13: balancing policy uncertainty with renewable energy demand
Victoria Olushola Olanrewaju, Bright Akwasi Gyamfi, İlker Özşahin, Tomiwa Sunday Adebayo
Abstract
This study pioneers an investigation into the impact of policy uncertainty (climate and economic) and industrial production on renewable energy demand, focusing on the United States. Utilizing monthly data spanning from April 1987 to September 2024, the research employs advanced multi-frequency quantile regression and multi-frequency quantile Granger causality to analyze these dynamics across various frequencies and quantiles. These advanced methodologies can capture associations between variables across multiple frequencies and quantiles. The findings reveal that industrial production and economic growth consistently exert a positive influence on renewable energy demand across all quantiles and frequencies. Conversely, policy uncertainty (both climate and economic) demonstrates mixed effects on renewable energy demand. Aligned with Sustainable Development Goals (SDGs), particularly SDG 7, 8, and 13, this study highlights the critical need for balanced strategies.