Is economic growth compatible with a reduction in CO2 emissions? Empirical analysis of the United States

Abstract

Energy-related carbon dioxide (CO2) emissions dropped 12% between 2007 and 2016 in the United States (U.S.), while the gross domestic product (GDP) increased by 19%. empirical data related to the decoupling of carbon emissions from economic growth in the U.S. provides a useful study pilot opportunity and serves as a good example for other countries to learn about CO2 emission mitigation. This study identified the relationship between CO2 emissions and economic growth in the U.S. The goal was to determine if the rigid link between the two can be changed, and identify the potential drivers of this trend. We combined the Cobb–Douglas (C-D) production function and the extended Kaya equation to develop decomposition and decoupling techniques to quantify six potential effects. The results show that the investment effect and economy structure effect played the most important roles in increasing carbon dioxide emissions. In contrast, the energy intensity effect cut carbon emissions in most of the years studied. Strong decoupling and weak decoupling are the main states; the energy intensity effect accelerated the decoupling process. In contrast, the investment effect and labor effect decelerated the decoupling process in recent decades. The study concludes that emission mitigation and decoupling policies should emphasize energy efficiency, investment patterns, and improvements in labor force quality.