Threshold effects of renewable energy consumption by source in U.S. economy
With the climate challenges and the depletion of fossil resources, the renewable energy option seems to be a wise choice; this renews the debate on the relationship between renewable energy sources consumption and economic growth. This study relies on a threshold effects regression model to explore and evaluate the non-linear relationship between the series in the United States during the period 1984Q1–2021Q3. Using the threshold detection method proposed by Hansen and Seo (2002), the results of this method show that the renewable energy sources consumption/GDP relationship is non-linear.