Renewable Energy Consumption in the United States: A Wavelet Analysis

Researchers from Texas State University conducted a comprehensive study to explore the determinants of renewable energy consumption (RENC) in the United States, using wavelet coherence techniques with quarterly data from 1990Q1 to 2020Q4. The findings highlight the significant long-and medium-term in-phase connections between RENC, fiscal decentralization, and economic growth, while also revealing the impact of increased carbon emissions, environmental policy stringency, and eco-innovation on RENC. The study's results have significant policy implications for promoting RENC and achieving the United Nations' Sustainable Development Goals (UNSDGs) 7, focusing on affordable clean energy.

Key Takeaways:

  • The study uses wavelet coherence techniques to analyze quarterly data from 1990Q1 to 2020Q4 to explore the determinants of RENC in the United States.
  • The research identifies significant long-and medium-term in-phase connections between RENC, fiscal decentralization, and economic growth, with money supply showing a significant in-phase connection in the medium-term frequency.
  • Increased carbon emissions, environmental policy stringency, and eco-innovation lead to higher RENC in the short-medium term.
  • The analysis of partial and multiple coherence are in line with the findings of wavelet coherence in different frequency and time domains.
  • The study suggests that the United States should decentralize its fiscal policy at the state level, allocating more funds to clean technology research and development.
  • Sufficient financial resources and stricter environmental regulations may increase the usage of clean energy.
  • The research has significant policy implications for promoting RENC and achieving the UNSDGs 7.

Statistics:

  • The study uses quarterly data from 1990Q1 to 2020Q4.
  • The wavelet coherence findings show significant long-and medium-term in-phase connections between RENC, fiscal decentralization, and economic growth.
  • Money supply shows a significant in-phase connection in the medium-term frequency.
  • Increased carbon emissions, environmental policy stringency, and eco-innovation lead to higher RENC in the short-medium term.
  • The analysis of partial and multiple coherence are in line with the findings of wavelet coherence in different frequency and time domains.

Sources:

  • Environment, Development and Sustainability, 2025. doi: 10.1007/s10668-025-0273-y.
  • Springer. (Springer - www.springer.com; Environment, Development and Sustainability - www.springerlink.com/content/1387-585x/)
  • NewsRx. Findings from Texas State University Provides New Data on Renewable Energy (Do the United States'fiscal Decentralization, Money Supply, and Environmental Policies Promote the Clean Energy Transition?). Ecology, Environment & Conservation. July 18, 2025; p 401.