Fluctuations in Green Finance and Non-Renewable Energy Production

The USA has been confronting climate change due to the overuse of non-renewable energy sources. In this scenario, the energy transition from non-renewables to renewable energy is indispensable. Numerous studies in the literature have analyzed the relationship between green finance (GF) and clean energy sources. At the same time, minimal attention has been given to non-renewable energy production, specifically across different financial market conditions. GF is an effective instrument that can expedite energy transition. Therefore, this study examines whether GF fluctuations impact non-renewable energy production (NREP). The study uses the time series dataset of the USA covering the period 1985M1-2020M12. The findings of the quantile-on-quantile regression (QQR) approach explain that positive GF fluctuations decrease NREP across quantiles. The negative fluctuations in GF promote NREP across the quantiles of both variables. The findings directly contribute to achieving the United Nations Sustainable Development Goals (SDGs), specifically those related to affordable and clean energy (SDGs-7) and Climate action (SDGs-13). Based on the findings, the study put forward relevant policy recommendations to promote clean energy transition in the USA.