Study Results from Board of Governors Federal Reserve Provide New Insights into Climate Change (Technology and Energy Substitution: a Path Toward Climate Change Mitigation): Climate Change

2026 MAY 28 (NewsRx) -- By a News Reporter-Staff News Editor at Climate Change Daily News -- Investigators publish new report on Climate Change. According to news reporting originating from Washington, District of Columbia, by NewsRx correspondents, research stated, “Mitigating climate change is critically linked to reducing an economy’s reliance on fossil energy. This paper examines U.S. energy dependence, measured by its factor share, using a neoclassical framework systematically.”

Our news editors obtained a quote from the research from the Board of Governors Federal Reserve, “We present substitution across production inputs as a simple, explicit mechanism for climate-change mitigation and for interpreting energy-saving technical change. Allowing capital equipment-energy substitutability to vary over time, we find that changes in observed factor quantities can account for most low-frequency movements in the U.S. energy share over 1963-2019.”

According to the news editors, the research concluded: “Policies that foster access to and quality of capital equipment, and that account for dynamic substitutability between equipment and energy, can therefore support progress toward environmental goals.”

This research has been peer-reviewed.

For more information on this research see: Technology and Energy Substitution: a Path Toward Climate Change Mitigation. European Economic Review, 2026;186. European Economic Review can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; European Economic Review - http://www.journals.elsevier.com/european-economic-review/)

The news editors report that additional information may be obtained by contacting Musa Orak, Board of Governors Federal Reserve, 20TH St & Constitut Ave NW, Washington, DC 20551, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.euroecorev.2026.105326. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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