Temperature, energy consumption, and Co2 emission: testing for nonlinearity on USA Economy

Abstract

This paper analyzes the nonlinearity between temperature, CO2 emission, and energy consumption in US economy. To do this, an ARDL model with linear and nonlinear specifications has been used over the period between 1990:1 and 2016:12. Our finding indicates the existence of nonlinearity between variables. Indeed, the nonlinear models show the existence of a long-run relationship between temperature and electricity consumption and the economic growth of USA can be negatively affected during the periods of increase in temperature.