Abstract
This paper discusses the impact of film industry on CO2 emission of the USA by using four different single-equation cointegration methods, namely, fully modified least squares (FMOLS), dynamic least squares (DOLS), canonical cointegrating regression (CCR), and autoregressive distributed lag (ARDL) to check the robustness of the results. The data has chosen in line with the environment Kuznets curves (EKC) and pollution haven hypothesis, and the models use communication equipment in millions of dollars and capital in entertainment, literacy, and artistic originals as determinants of motion picture and sound recording industries with other control variables such as income per capita and energy use to examine their nexus. Moreover, we also employ the Granger causality test to determine whether one variable is a predictor of another. The results approve the validity of EKC hypotheses for the USA. As expected, increase in energy use and capital assets results in rise in CO2 emission, while communication equipment improves the environmental quality.
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