US Disaggregate Fossil Fuel Consumption and Real GDP: An Empirical Note

This empirical note provides a disaggregated analysis of the causal relationship between fossil fuel consumption and real gross domestic product (GDP) in the US using annual data from 1949 to 2006. The Toda-Yamamoto long-run causality tests reveal the absence of Granger-causality between coal consumption and real GDP; positive unidirectional causality from real GDP to natural gas consumption; and positive unidirectional causality from petroleum consumption to real GDP.