Dynamic behavioral characteristics of carbon dioxide emissions from energy consumption: the role of shale technology

Dynamic behavioral analysis of carbon dioxide ( CO_2 ) emissions to moderate the climate change helps to upgrade the developing measures utilized throughout the energy system decarbonization and mitigate global warming. Therefore, this research aims to analyze the role of the shale gas technology in behavioral characteristics of the US energy-related CO_2 emissions. To this end, first, the Markov regime-switching methodology is used to assess the scale- and technology effects of the shale revolution on the switching-regimes for source-/sector-based CO_2 emissions cycles of the US economy. Then, the dynamic network connectedness measures are utilized to determine the changes in the spillover effects between CO_2 emissions cycle series by source/sector pre- and post-shale revolution. The findings indicate asymmetric and time-varying behavior of CO_2 emissions cycles pre- and post-revolution. Particularly, the greater total spillover effect of the US source- and sector-based CO_2 emissions network is accompanied with the higher speed of “downward” regime following the revolution that lowers environmental degradation of the US economy. Hence, utilization of the US economies of scale in the shale technology develops the coordinating mechanism, which can support the cooperative relationship between sources/sectors of the energy system in response to the risks, time and cost change, caused by the shale revolution.