The Impact of Eco-Innovation and Clean Energy on Sustainable Development: Evidence from USA

Abstract

In recent times, natural resources have been receiving greater acknowledgment from economies as it greatly offers a compensation for energy requirements. Solar energy appears to be a strong indicator to improve quality of air by reducing CO2 emissions, which has been neglected by the available literature. Therefore, the study considers exploring the dynamic role of solar energy in CO2 emissions and economic growth in a sample of the US. We applied the QARDL approach and covered the period ranging from 1990 to 2019. Our findings showcased that solar energy mitigates CO2 emissions by increasing economic growth in different quantiles in the USA. Solar energy use is increasing economic growth at higher quantiles in the USA. Eco innovations are also contributing to economic growth by reducing CO2 emissions in different quantiles. Bidirectional quantile causality was found between the constructs. This study suggested the usage of solar energy and eco-innovations in the sustainable growth pattern of the country.