Abstract
The current paper investigates the sustainability growth problem in the USA and evaluating the co-integration relationship among all variables, including oil, carbon emission, and consumption of energy. We also determine the impacts of energy consumption on the USA economic growth, government spending, and trade openness. We used the co-integration and popular lag model (ARDL) to find the long-term and short-term relationships between all study variables. The empirical results show that (1) the crude oil prices increase and adverse impact on energy demand and government expenditure during the study periods, and CO2 emission negatively affects USA economic growth. In addition, (2) the innovative accounting method (ICA) results, we used further research to research the causality between study variables. The empirical results propose that oil prices affect the country's economy responsible for more energy consumption, and the causal effect between consumption of energy and economic growth is not relevant. Wastage of energy allows the system to produce more CO2 emissions. Model results find that the one-sided causal effects of economic growth and CO2. We see during the analyses that (CO2) emissions will negatively impact the country's economy. Therefore, country policymakers are expected to change fossil fuel energy to non-fossil fuel energy as an essential component of the USA's economic growth policies.
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