Do innovation in environmental-related technologies asymmetrically affect carbon dioxide emissions in the United States?

Abstract

This research scrutinizes the cyclical impact of innovation in environmental-related technologies on CO2 emanations for the United States from 1990Q1 to 2016Q4. First, the findings point out that positive shocks in innovation in environmental-related technologies during the expansion phase lead to a decrease in CO2emissions. Second, the results highlight that negative shocks in innovation in environmental-related technologies during the contraction phase increase CO2 emissions. Third, the results also indicate that gross domestic product and trade openness have a positive impact on CO2 emissions. Fourth, the findings signify that renewable energy consumption serves as an effective measure to mitigate CO2emissions. Government is suggested that certain measures supporting innovation in environmental-related technologies during the boom and recession periods be implemented to reduce CO2 emissions in the United States.