Solar Compass 12 (2024) 100081 Available online 11 August 2024 2772-9400/© 2024 The Author(s). Published by Elsevier Ltd on behalf of International Solar Alliance. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). The high price U.S green economy: A specific factor modeling Osei-Agyeman Yeboah , Nicholas Mensah Amoah * , Kwadwo Antwi-Wiafe L.C. Cooper, Jr. International Trade Center, North Carolina A&T State University, Greensboro, NC, 27411, USA ARTICLE INFO Keywords: Renewable energy Specific factor model Green energy Inflation reduction act ABSTRACT The high price of energy due to the green energy policy will cause adjustments across the U.S. economy is predicted in the present computable general equilibrium with specific factors model. This includes energy input, especially electricity with capital and labor to produce manufacturing and service goods. 2022 labor, energy, and sector-specific capital input data on U.S. manufacturing, service, and agricultural sectors is applied to specific factors of the computable general equilibrium model. The model, which assumes constant returns, full employment, competitive pricing, and perfect labor mobility across industries hypothesizes a range of price changes due to project potential adjustments in factor prices and outputs. The U.S manufacturing sector is revealed to have a higher degree of noncompetitive pricing for energy factor inputs, but not on labor and capital as advocates for green energy tout by the new technology. The policy has virtually no significant impact on the service and agricultural sectors. The high price of green energy will cause an elastic decrease in all energy inputs. The output from energy-intensive manufacturing only rises in the long run by 4 % while service and agriculture fall. Clear winners are the owners of energy resources through their price-searching behavior. This includes the government, which owns a large share of hydrocarbon reserves. 1. Introduction The world still depends heavily on coal, oil, and natural gas to meet its energy needs [1]. Fossil fuels supply a large part of the total primary energy use in the world, about 75 % [2,3]. However, the use of these energy sources has a drastic impact on the environment. Fossil fuel consumption contributes significantly to CO 2 emissions, which pose a serious environmental threat due to its impact on climate change. World CO 2 emissions are expected to increase substantially, from 23,899 million metric tons in 2001 to 37,124 million metric tons in 2025. CO 2 emissions in 2025 would exceed 1990 levels by 72 % [3]. Acidification and metal dispersion from fossil fuels are other environmental problems. Furthermore, fossil fuels are nonrenewable, so they won’t last forever [4]. As their supplies dwindle, they will become more expensive and challenging to retrieve while still damaging the environment. In response, more countries including the United States are shifting away from nonrenewable energy sources and turning to “green energy” to mitigate environmental damage while benefiting the economy [5]. Green energy is generated from renewable sources rather than limited sources, such as fossil fuels. Consumers, businesses, and governments worldwide are shifting away from fossil fuel energy toward green energy to lessen the impact of climate change and pollution. Renewable energy sources include solar, wind, water (hydropower, tides, and waves), biomass and geothermal. These energy sources generally lessen the impact of energy on the environment compared with fossil fuels, and they’ll never die out because they are continuously replenished. Fossil fuels dominate the power sector and will continue to be a significant energy source for at least the next 10 years [6]. These energy sources accounted for about 84 % of total U.S. primary energy produc- tion in 2022 [7]. Despite the current high demand for fossil fuels, there are indications of a change in direction to renewable energy sources. According to an International Energy Agency (IEA) report 2023 [8], fossil fuel in global energy supply stuck for decades is approximately 80 %. However, the report predicts that fossil fuels will make up only 70 % of the global energy supply by 2030. Thus, it will likely shrink as a percentage of total energy output in subsequent years. China has been a leading renewable energy producer and is responsible for generating 30.8 % of global hydroelectric power, 33.8 % of global wind energy, and 32.3 % of global solar energy. Europe and the U.S. are also big producers of renewable energy producing 15.5 % and 16 % of global solar energy, 21.4 % and 20.9 % of global wind energy, and hydroelectric power, 8.2 % and 6.1 %, respectively [9]. The United States is focused on transforming toward a more energy-based economy as the reality of global climate change approaches rapidly. Clean * Corresponding author. E-mail address: nmamoah@aggies.ncat.edu (N.M. Amoah). Contents lists available at ScienceDirect Solar Compass journal homepage: www.elsevier.com/locate/solcom https://doi.org/10.1016/j.solcom.2024.100081 Received 1 May 2024; Received in revised form 23 July 2024; Accepted 10 August 2024