Revisiting R&D intensity and CO2 emissions link in the USA using time varying granger causality test: 1870∼2020

Hao-Wen Chang; Tsangyao Chang; Feiyun Xiang; Alexey Mikhaylov; Adriana Grigorescu

doi:10.1016/j.heliyon.2023.e20319

Revisiting R&D intensity and CO2 emissions link in the USA using time varying granger causality test: 1870∼2020

Heliyon. 2023 Sep 20;9(10):e20319. doi: 10.1016/j.heliyon.2023.e20319. eCollection 2023 Oct.

Authors

Hao-Wen Chang¹, Tsangyao Chang², Feiyun Xiang³, Alexey Mikhaylov⁴, Adriana Grigorescu^{5

6

7}

Affiliations

¹ Department of Information Management and Finance, National Yang-Ming Chiao-Tung University, Hsinchu, Taiwan.
² Department of Finance, Feng Chia University, Taichung, Taiwan.
³ School of Mathematics and Information Science, Guangzhou University, Guangzhou Higher Education Mega Center No. 230, Guangzhou, PR China.
⁴ Financial University Under the Government of the Russian Federation, Moscow, Russia.
⁵ National University of Political Studies and Public Administration, Bucharest, Romania.
⁶ Academy of Romanian Scientists, Bucharest, Romania.
⁷ Romanian Academy - National Institute for Economic Research "Costin C. Kiritescu", Bucharest Romania.

Abstract

R&D intensity, per capita GDP, and per capita CO2 emissions links in the USA over the period of 1870-2020 reflects the evolution of the economic development and technology for the environment benefit. Using Time varying Granger causality, the empirical results indicate both causal links between R&D intensity and per capita CO2 emissions and between per capita GDP and per capita CO2 emissions are time varying. In addition, R&D intensity significantly affects per capita CO2 emissions since 1975, and the per capita GDP significantly influences per capita CO2 emissions since 1978. That is, these findings not only in supportive of the EKC theory, but further disentangle the subtly linkages for the R&D intensity and CO2 emissions and the per capita GDP and CO2 emissions. Finally, the policy implication is that launch the new technical innovation and increase in R&D investment to maintain its sustainable economic growth are the best government strategy to reduce CO2 emissions in the USA.

Keywords: Economic development; Environment protection; Granger causality test; Innovation; Per capita CO2 emissions; Per capita GDP; R&D; Time-varying.