NEW EVIDENCE ON THE LINKAGE BETWEEN ENERGY CONSUMPTION AND ECONOMIC GROWTH IN THE UNITED STATES.

The article discusses a study which examines the relationship between coal, renewable energy, natural gas and electricity consumption and economic growth in the U.S. from 1949 to 2009 through fractional cointegration approach. It found that fractional cointegration is evident between consumption of coal and economic development. The analysis suggests that natural gas consumption and real gross domestic product (GDP) are not fractionally cointegrated.