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Role of energy transition in easing energy security risk and decreasing CO 2 emissions: Disaggregated level evidence from the USA by quantile-based models.
Journal of Environmental Management 2024 April 27
Consistent with the increasing environmental interest, the clean energy transition is highly critical to achieving decarbonization targets. Also, energy security has become an important topic under the shadow of the energy crisis,. Accordingly, countries have been trying to stimulate clean energy use to preserve the environment and ensure energy security. So, considering the leading role of economic size and volume of energy use, the study examines the USA to define whether energy transition helps decrease energy security risk (ESR) and curb CO2 emissions. So, the study applies a disaggregated level analysis by performing quantile-based models for the period from 2001/Q1 through 2022/Q4. The results demonstrate that (i) the energy transition index decreases environmental ESR at higher quantiles and reliability ESR at lower and middle quantiles, whereas it is not beneficial in declining economic and geopolitical ESR; (ii) energy transition curbs CO2 emissions in building and transport sectors at lower quantiles, whereas it does not help decrease CO2 emissions in industrial and power sectors; (iii) energy transition is mostly ineffective on ESR, whereas it is highly effective in curbing CO2 emissions in all sectors except for transport across various quantiles as time passes; (iv) the results differ according to the aggregated and disaggregated levels; (v) the results are consistent across main and alternative models. Hence, the study highlights the dominant effect of energy transition in curbing sectoral CO2 emissions rather than easing ESR. Accordingly, the study discusses various policy implications for the USA.
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