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Articulating the Role of Technological Innovation and Policy Uncertainty in Energy Efficiency: an Empirical Investigation

Author

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  • Xiaohua Sun

    (Department of Economic and Management, Shanghai Technical Institute of Electronics & Information)

  • Danish Khan

    (Guangdong University of Foreign Studies)

  • Yubai Zheng

    (Guangdong University of Foreign Studies)

Abstract

The foremost goal of the Sustainable Development Goals (SDGs) is to increase energy efficiency and stipulate access to developed energy sources. Therefore, it is believed that investing in energy resources is one of the SDGs and one of the main drivers of obtaining affordable and clean energy. To achieve long-term economic growth, energy efficiency must be drastically enhanced. Today, it’s more important than ever to understand what’s holding back progress in energy efficiency. So, the purpose of this paper was to look into the determinants of energy efficiency measures in the United States (US). The study made an effort to pin down the role that technological innovation, economic policy uncertainty, globalization, and research and development (R&D) played in energy efficiency. Using dynamic auto-regressive distributive lag simulation and kernel-based regularized least-squares methods, the long-term equilibrium between the variables from 1985 to 2020 was shown to be stable. Empirical findings confirmed the cointegration relationship among the study’s underlying variables. We find the negative effect of economic policy uncertainty on American energy efficiency. The outcomes of the study have some important policy implications, such as that improved energy efficiency is a byproduct of rising economic output, environmental technologies, and investment in R&D.

Suggested Citation

  • Xiaohua Sun & Danish Khan & Yubai Zheng, 2024. "Articulating the Role of Technological Innovation and Policy Uncertainty in Energy Efficiency: an Empirical Investigation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 14597-14616, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01628-8
    DOI: 10.1007/s13132-023-01628-8
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    More about this item

    Keywords

    Energy efficiency; Economic policy uncertainty; Dynamic ARDL and KRLS methods; USA;
    All these keywords.

    JEL classification:

    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • N70 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - General, International, or Comparative

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