Environmental Technologies, Renewable Energy Consumption and Environmental Sustainability: Do Climate Policy Uncertainties Matter?

ABSTRACT In an era of escalating climate pressure, cutting carbon emissions is no longer just a matter of increasing renewable energy use, but also of advancing environmental technologies and ensuring a more predictable monetary and climate policy environment. Thus, this study examines how environmental technologies, total renewable energy consumption, monetary policy uncertainty and climate policy uncertainty shape total carbon emissions in the United States. Using monthly data from 01/04/2005 to 01/11/2025, the analysis applies a novel wavelet quantile‐on‐quantile regression approach to uncover heterogeneous effects across different emission conditions and time horizons. The findings reveal that total TREC exerts a mostly positive effect on emissions in the short term, becomes mixed in the medium term, and turns largely negative in the long term. CPU also displays mixed short‐ and medium‐term effects, but its long‐term impact is more frequently positive, implying that persistent climate‐policy instability may raise emissions. ET exhibit heterogeneous effects, with some short‐term emission‐reducing impacts and clearer medium‐ and long‐term mitigation patterns. MP remains mixed in the short term but becomes more positive in the medium and long term. These findings offer important implications for the United States.