"Per Capita Energy Consumption and CO2 Emissions: How and Why do States Differ
This study examines state-level energy consumption and carbon emissions in the United States from 1980 to 2007. State-level per capita carbon emissions are decomposed into emission intensity, electricity trade, energy intensity, and income effects, with distinctions made between consumption- and production-based emissions. Growth accounting analysis revealed that energy intensity and income effects were the dominant factors influencing growth in per capita emissions. Separate panel data models were used to estimate emission intensity, electricity trade effects, and energy intensity as functions of energy resource endowments, energy prices, climate, and population density. Results suggest the following. There is an inverted U shaped relationship between emission intensity (carbon emissions / Btu) and income. There is a U shaped relationship between electricity trade effects and income, with high-income states importing electricity and low-income states generating carbon emissions to export electricity. There is a monotonically decreasing relationship between energy intensity and income. The total effect of income on carbon emissions exhibits an inverted U shape. However, the vast majority of states are still on the upward-sloping portion of the emissions-income curve.