Re-Evaluating the Role of Business R&D in Environmental Sustainability: Evidence From the United States Under the SDG-9 Framework

Abstract

This study examines how business enterprise R&D (BERD) affects environmental sustainability in the United States (USA) using annual data from 1981 to 2022. Grounded in Porter and Load Capacity Curve theories, it combines empirical models with energy diversification scenarios to explore pathways toward achieving net-zero emissions. The analysis employs the Augmented ARDL with a sharp-shift approach. Results indicate that BERD does not significantly affect environmental sustainability, suggesting that its current level is insufficient to influence environmental outcomes in the USA economy. While renewable energy supports sustainability, fossil fuels have a detrimental effect. The scenario analysis pinpoints practical routes to accelerate progress toward net-zero emissions. Accordingly, the study recommends enhancing incentives for private-sector innovation and aligning BERD initiatives with national sustainability and clean-energy goals. These insights contribute to existing research by highlighting BERD's limited environmental impact and offering guidance for more effective business-led sustainability and energy transition efforts.