Uncertainty in climate and ESG policies: implications for renewable energy investments

Le résumé fourni par la source

In an era where transitioning to renewable energy is vital, this study investigates the impact of various uncertainties spanning ESG-based sustainability, climate policy uncertainty, economic policy uncertainty, and monetary policy on renewable energy consumption. Using monthly U.S. data from November 2002 to September 2024, the study applies Kernel Regularized Quantile Regression (KRQR), a novel technique capable of capturing heterogeneous effects across the distribution of renewable energy consumption. The results reveal that policy uncertainties exert differing impacts across quantiles: while lower quantiles reflect vulnerability to such uncertainties, higher quantiles exhibit greater resilience and adaptive capacity. Notably, climate and economic policy uncertainties suppress renewable energy uptake at lower levels, whereas higher quantiles respond positively, suggesting opportunities for innovation. ESG-related uncertainty deters investment, particularly at higher quantiles, indicating its long-term risk implications. These quantile-level insights inform tailored policy recommendations such as enhancing regulatory consistency and aligning financial mechanisms with uncertainty-resilient sectors aimed at fostering inclusive and sustainable energy transitions.

Ce résumé expose les affirmations des auteurs. BNTIC ne l’interprète pas comme une validation indépendante des résultats.