Investigating the determinants of carbon emissions in the USA: a state-level analysis

Abstract

The present study investigates the significant determinants of carbon emissions, namely, GDP, energy consumption, energy price, and energy expenditure, utilizing data of 50 American states from 2005 to 2016. Results obtained from application of OLS with fixed effects and panel quantile regression revealed that the effect of GDP on carbon emissions is negative but significant at all quantiles, energy consumption and energy price have a positive and significant effect on carbon emissions, while the effect of energy expenditure is negative but significant at the upper and lower quantiles, implying that high energy expenditures do not reduce carbon dioxide emission at the US state level. Policymakers should introduce further initiatives, so all the states would implement the climate legislations.