Comparative analysis of CO2 emissions and economic performance in the United States and China: Navigating sustainable development in the climate change era

• Published in: Di xue qian yuan. 2024-09, Vol.15 (5), p.101843, Article 101843
• Main Authors: Mehmood, Khalid, Tauseef Hassan, Syed, Qiu, Xuchun, Ali, Shahid
• Format: Article
• Language: English
• Subjects: BARDL; China; Climate change; CO2 emission; Sustainable development; United States
• ISSN: 1674-9871
• DOI: 10.1016/j.gsf.2024.101843

[Display omitted] •Mitigation strategies of CO2 emissions for China and US.•BARDL model shows varying effects of coal and oil CO2 emissions on economic growth.•Coal CO2 emissions have negative long-term impact on growth in China and US.•Oil CO2 emissions have positive impact on China’s growth in short and long run.•US decision makers should balance coal CO2 emissions with economic performance. Economic growth has brought a global climate change into the spotlight, and CO2 emissions demonstrate significant challenges in reducing environmental shifts worldwide. Globally, the United States and China contribute the largest amount of CO2 emissions. The purpose of this study is to examine the relationship between different types of CO2 emissions and economic growth by using a modeling approach. We analyze total CO2 emissions, coal CO2 emissions, oil CO2 emissions, the global share of coal CO2 emissions, the global share of oil CO2 emissions, and economic growth. This study provides unique insights into how to simultaneously reduce CO2 emissions and sustain economic growth. A bootstrap autoregressive distributed lag (BARDL) simulation method is utilized to examine the long- and short-run effects of predictors on CO2 emissions. Coal CO2 emissions are found to have a significant positive effect on economic growth in the short run but a negative impact on economic growth over the long run in the United States. The United States needs to implement stronger measures to balance coal CO2 emissions with economic growth for sustainable development. In contrast, oil CO2 emissions have positive effect for China in both the long run and short run. Thus, China can continue to reduce CO2 emissions from oil while maintaining positive economic growth. The China's policies promoting cleaner energy alternatives can be adapted and implemented to maintain a balance between economic growth and carbon reduction. The study has valuable insights for policymakers seeking to balance economic growth with carbon reduction strategies. It emphasizes the need to better understand the complex relationship between CO2 emissions and economic growth.