The environmental Kuznets curve and CO2 emissions in the USAIs the relationship between GDP and CO2 emissions time varying? Evidence across economic sectors

In this paper, we analyze the existence of the environmental Kuznets curve as reported by Kuznets (Am Econ Rev 5:1–28, 1955) by using the methodology proposed by Kejriwal and Perron (J Econ 146:59–73, 2008, J Bus Econ Stat 28:503–522, 2010) and applying Jaunky’s (Energy Policy 39(3):1228–1240, 2011) specification using quarterly data from 1973:1 to 2015:2. We also allow different behaviors across time and identify it by economic sectors. Our results show the existence of the environmental Kuznets curve (EKC) in the USA only when we allow for structural breaks. Interestingly, the industrial sector shows a different pattern than do other economic sectors; with the beginning of the economic crisis, it appears to have abandoned the objective of the environmental stabilization found until then.