Abstract
China and the United States have the highest demand for fossil fuel energy for transportation and power generation, which promotes growth while also damaging the environment. Policymakers, and environmental scientists, are increasingly interested in understanding key strategies to improve energy efficiency to mitigate fossil fuel energy demand and sustain the environment and growth. In this context, this study uses augmented mean groups (AMG) and common correlated effects mean group (CCEMG) estimators to reveal the impact of China-US technological innovation, transportation infrastructure, and power generation on fossil fuel energy demand and fossil fuel energy intensity from 1995 to 2020. Besides, the study examines whether fossil fuel energy use and fossil fuel energy intensity are the main drivers of carbon dioxide emissions (CO(2)) and economic growth. The analysis results show that technological innovation has a strong adverse influence on fossil fuel energy use, and fossil fuel energy intensity. Electricity generation, road transport infrastructure investment and aviation infrastructure investment have considerably contributed to fossil fuel energy use, and fossil fuel energy intensity. The construction of rail transit infrastructure has significantly alleviated fossil fuel energy demand, and fossil fuel energy intensity. Fossil fuel energy use and fossil fuel energy intensity significantly contribute to carbon dioxide (CO(2)) emissions and economic growth. However, technological innovation and renewable energy use can substantially reduce carbon dioxide (CO(2)) emissions, while making a considerable contribution to economic growth. Based on empirical investigation, this study provides a series of useful insights into the sustainable development goals of the Chinese and American economies.