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

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TORUN E., Akdeniz A. D. A., DEMİRELİ E., Grima S.

SUSTAINABILITY, cilt.14, sa.17, 2022 (SCI-Expanded) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 14 Sayı: 17
  • Basım Tarihi: 2022
  • Doi Numarası: 10.3390/su141710566
  • Dergi Adı: SUSTAINABILITY
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Social Sciences Citation Index (SSCI), Scopus, Aerospace Database, CAB Abstracts, Communication Abstracts, Food Science & Technology Abstracts, Geobase, INSPEC, Metadex, Veterinary Science Database, Directory of Open Access Journals, Civil Engineering Abstracts
  • Anahtar Kelimeler: CO2 emissions, economic growth, continuous wavelet transform, causality, TIME-FREQUENCY RELATIONSHIP, ENERGY-CONSUMPTION, CO2 EMISSIONS, GRANGER CAUSALITY, COINTEGRATION ANALYSIS, INFORMATION-FLOW, FUTURES MARKETS, UNITED-STATES, EXCHANGE-RATE, PANEL-DATA
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

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