The Causal Dynamics Between US Renewable Energy Consumption, Output, Emissions, and Oil Prices

This article examines the causal dynamics between renewable energy consumption, real gross domestic product (GDP), carbon emissions, and real oil prices using the Toda-Yamamoto long-causality test procedure over the period 1949 to 2009. The results indicate that renewable energy legislation and policies since 1978 had a positive and statistically significant impact on renewable energy consumption. Though the results suggest that real GDP, carbon emissions, and real oil prices did not have a causal impact on renewable energy consumption, unexpected shocks to real GDP and carbon emissions yielded a positive impact on renewable energy consumption over time.