Business cycle co-movements between renewables consumption and industrial production: A continuous wavelet coherence approach

One may observe that there exist many seminal papers in energy literature to investigate intensively the energy consumption-growth nexus. The majority of these papers employ time series and/or panel data methodologies to explore, if exists, the impact of energy and/or renewable energy usage on economic growth. While time series or panel data methodologies, on the other hand, can capture time and/or cross sectional dimensions of variables, they are not able to observe frequency dimension of the related variables. This paper, thus, aims at considering both time series and frequency properties of relevant data through wavelet coherence methodology to follow the possible influences of US renewable energy consumption on the US economy in both the short run and the long run cycles