Which type of energy drove industrial growth in the US from 2000 to 2018 ?

Abstract

This paper investigates the impacts of non-renewable consumption (NRE) and renewable energy consumption (RE) on industrial production (IP) in the US using monthly data from 2000:01 to 2018:02. To do so, the paper employs the nonlinear autoregressive distributed lag (NARDL) approach to examine asymmetric relationships, thus contributing to the past literature methodologically. The findings show that both non-renewable and renewable energy drive industrial growth in the US and that a certain asymmetric behaviour can be concluded: the impact of an increase in NRE on IP is greater than that of a decrease in NRE on IP, while the influence of an increase in RE on IP seems to be less than that of a decrease in RE on IP.