Impact of Fossil Energy on the Economic Growth in the United States

This study investigates the impact of fossil fuel energy, investment in energy, and economic growth on the working age population in United States (US) for the period from 1960 to 2016 using a vector error correction model (VECM). The major contribution of the study to the literature is the research on the relationship between natural gas, coal, crude oil, investment in power and electricity, and economic growth on the working age population and the environment in US, which is seldom considered.The findings reveal a negative impact of fossil fuels energy, investment in energy, and economic growth on the working age population in the US. As a result, the error correction term (ECMt-1) shows how the system can converge to its long-run equilibrium state. It is evident that, based on the Granger causality results, the variables of interest have a negative impact on the population and the environment in the US. In summary, the robustness checks have provided strong evidence of the goodness of fit of the model and confirm that applicable inference can be drawn with a high level of confidence. The study recommends that conservation of energy consumption will contribute to a cleaner environment and reduced pollution