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Testing the EKC hypothesis for the USA by avoiding aggregation bias: a microstudy by subsectors

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Abstract

The aim of this study is to examine the impact of foreign direct investments, economic growth, and energy consumption on carbon dioxide subcomponents in the case of the USA. Dynamic ARDL (DARDL) econometric method is used covering the period 1972–2020. In addition to the total CO2 emission, the subcomponents of CO2 emission are examined separately within the framework of the EKC hypothesis in the USA by avoiding aggregation bias for the first time. The CO2 emission subcomponents used in the study are as follows; CO2 emissions from liquid fuel consumption, residential buildings, and commercial and public services; electricity and heat production; and other sectors, excluding residential buildings and commercial and public services, and CO2 emissions from transportation. Each CO2 emission component is used as a dependent variable and 6 different models were created. Foreign direct investments, trade, and energy consumption are used as control variables. No results supporting the EKC hypothesis are determined in any model, except for model 1, where total CO2 emission is the dependent variable. In addition, the trade variable has been determined as an important factor in reducing CO2 emissions in the short and long term. Trade and GDP per capita increasing and energy consumption reducing will show positive results in order to increase the environmental quality in the USA. Moreover, the study in which this EKC hypothesis is tested with CO2 emission and its subcomponents is an important study in terms of providing the opportunity to analyze the environmental quality from different angles at the same time and to take various measures together in the US economy.

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Author notes

  1. Alper Aslan, Oguz OCAL, and Baki Ozsolak contributed equally to this work as co-authors.

Authors and Affiliations

  1. Department of Aviation Management, Faculty of Aeronautics and Astronautics, Erciyes University, Kayseri, Turkey

    Alper Aslan

  2. Faculty of Applied Sciences, Kayseri University, Kayseri, Turkey

    Oguz Ocal

  3. Social Science Institute, Nevsehir Haci Bektas Veli University, Nevsehir, Turkey

    Baki Özsolak

Authors
  1. Alper Aslan
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  2. Oguz Ocal
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  3. Baki Özsolak
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Contributions

Writing—original draft, conceptualization: OO; writing—original draft: AA; data curation: BO; supervision, project administration: AA.

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Correspondence to Alper Aslan.

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Aslan, A., Ocal, O. & Özsolak, B. Testing the EKC hypothesis for the USA by avoiding aggregation bias: a microstudy by subsectors. Environ Sci Pollut Res 29, 41684–41694 (2022). https://doi.org/10.1007/s11356-022-18897-6

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