Renewable energy and non-renewable energy consumption: assessing the asymmetric role of monetary policy uncertainty in energy consumption

Previous infant literature has assessed the symmetric impact of monetary policy uncertainty on a few macro variables. Our study has considered asymmetric monetary policy uncertainty impacts on energy consumption. Our key concern in this study is to regulate whether US monetary policy uncertainty has...

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Bibliographic Details
Published in:Environmental science and pollution research international 2021-06, Vol.28 (24), p.31575-31584
Main Authors: Sohail, Muhammad Tayyab, Xiuyuan, Yu, Usman, Ahmed, Majeed, Muhammad Tariq, Ullah, Sana
Format: Article
Language:English
Subjects:
Aquatic Pollution
Atmospheric Protection/Air Quality Control/Air Pollution
Earth and Environmental Science
Ecotoxicology
Energy consumption
Energy policy
Environment
Environmental Chemistry
Environmental Health
Environmental science
Monetary policy
Renewable energy
Renewable resources
Research Article
Skewed distributions
Uncertainty
Waste Water Technology
Water Management
Water Pollution Control
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Summary:Previous infant literature has assessed the symmetric impact of monetary policy uncertainty on a few macro variables. Our study has considered asymmetric monetary policy uncertainty impacts on energy consumption. Our key concern in this study is to regulate whether US monetary policy uncertainty has an asymmetric impact on energy consumption. We employ the symmetric and asymmetric autoregressive distributed lag (ARDL) estimation methods, and we found that monetary policy uncertainty has short- and long-run negative effects on renewable energy consumption in the linear model, while decreased monetary policy uncertainty has a significant negative influence on renewable energy consumption in the USA in the non-linear model. However, in the short and long run, the measure of monetary policy uncertainty has an insignificant impact on non-renewable energy consumption, while increased monetary policy uncertainty in the USA has negative effects and decreased monetary policy uncertainty has positive effects on non-renewable energy consumption in the short and long run in the non-linear model. The effects are asymmetric in direction and magnitude. The study results call for vital changes in renewable and non-renewable energy policies to accommodate monetary policy uncertainties.
ISSN:0944-1344
1614-7499
DOI:10.1007/s11356-021-12867-0