Analyzing the impact of environmental technological regulations, energy security, and natural resources on energy intensity in the USA

Abstract

Energy intensity is a critical indicator of energy efficiency and sustainability. Energy efficiency may vary depending on the country's energy and environmental policies. If the energy security risk is too high, instead of long-term R&D investments that will reduce the country's energy intensity, it may increase the use of fossil fuels to ensure energy stability in the short term. On the other hand, a relatively lower security risk may enable the economy to reduce energy intensity in the long term through R&D investments. Although natural resources provide supply stability in the short term, they may increase security risks in the long term due to supply disruptions. Technological regulations can reduce energy intensity in the long term by making low-carbon energies, such as renewable and nuclear energy, more efficient. This study examines the impact of energy security risk, natural resources, technological regulation, and economic growth on energy intensity in the USA from 1990 to 2019. The study results show that energy security risk reduces energy intensity while natural resources and economic growth increase it. The USA, relying on economic development and abundant natural resources, lacks proactive innovation pursuits. The financial resources brought by economic growth must be directed to low-energy, low-carbon initiatives.