This paper examines the causality relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and Energy Consumption (EC) in the United States and China from 1982 to 2013. The results for the U.S. showed no significant causality between GDP and energy consumption, GDP and FDI, as well as between energy consumption and FDI. The results for China showed a bi-directional relationship from GDP to FDI, and unidirectional relationship running from energy consumption to GDP and FDI. The country-specific causality studies between energy consumption and economic growth can provide insight for designing new energy policies, it is also important to arrive at unambiguous results for policy implementation. Our empirical evidence indicated that each country should implement different strategies as they face different economic situations and energy policies.
