Dampening energy security-related uncertainties in the United States: The role of green energy-technology investment and operation of transnational corporations

Several studies provide that the green energy transition is critical to attaining environmental sustainability. However, the extent to which investment in green energy technologies influence energy-related uncertainties is not well known. This study set out to investigate the effect of green energy-technology investment and operation of Transnational Corporations (TNCs) on the United States energy security uncertainties over the period 1974-2020. Applying econometric techniques using the Kernel-based regularized least squares (KRLS) and nonparametric multivariate quantile-on-quantile regression (MQQR), we show that green energy-technology investment dampens uncertainties related to energy security. The results also demonstrate that while economic expansion is negatively associated with the United States' energy security uncertainties, the operational behaviours of TNCs via direct investment by foreigners and trade openness amplify energy security uncertainty matrices. Furthermore, the effects of green energy-technology investment, operational behaviours of TNCs, economic expansion, and trade openness exhibit an inherent heterogeneity, leading to the asymmetric pattern in the distribution of the United States energy security-related uncertainties. Notably, these results are confirmed by the disaggregated models for energy security uncertainties with the exception of the environmental-related risks sub-index which dampens as a result of the operation of TNCs. Given these findings, the study suggests, among others, the need for government and policymakers to increase investment in renewable energy R&D technology to dampen energy security-related uncertainties and achieve a sustainable environment.