The role of solar energy usage in environmental sustainability: Fresh evidence through time-frequency analyses

Abstract

The most important challenge for both developed and developing countries is to ensure sustainability while struggling with environmental degradation. CO2 emissions as a proxy for environmental degradation can be considered an obstacle to sustainability. There exist several significant works in the literature on the effects of solar energy use on environmental degradation/sustainability. In this study, the effects of the use of solar energy within different time and frequency dimensions on CO2 emissions were examined with the methodology of the continuous wavelet transform. The paper investigated the association between solar energy consumption and total energy-related CO2 emissions in the USA through Morlet wavelet analysis, which is one of the most advanced time-frequency analysis methods for the period 1990:1–2022:6. In the wavelet coherency computations, geothermal energy consumption, hydroelectric energy consumption, industrial production, and manufacturing industry production variables were also included as control variables. Empirical findings demonstrate that solar energy consumption can have reducing effects on CO2 emissions at lower frequencies (longer-term cycles) and sub-time periods (2014:1–2022:1) in the USA. The findings can guide the energy and environmental policies of developed and developing countries that aim to struggle with global warming and/or climate change through the increase in solar energy usage.