Long-Term US Economic Growth and the Carbon Dioxide Emissions Nexus: A Wavelet-Based Approach

Economic growth has significantly boomed carbon emissions in the global economy. However, there is an ongoing debate about economic growth–carbon emission nexus for various economies literature. This paper investigates short/long-term causal information flow between fossil-fuel-related dioxide (CO2) and (GDP) US economy spanning from 1800 to 2014. Using wavelet-based-nonparametric Granger causality analysis, empirical results indicate that (i) long-run running GDP CO2 positive, strong, uninterrupted concentrated since 1990s; (ii) reverse positive but interrupted, short-term intensifying during early 1990s. Due strong very long-term unidirectional findings, leads environmental deterioration. Hence, policymakers, environment-based policies structural reforms can foreshadow energy-efficient by limiting emissions. sustainable are expected decelerate problems promote sustainability. The findings be attractive other booming economies.