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Energy and Carbon Dynamics at Advanced Stages of Development: An Analysis of the U.S. States, 1960-1999

  • Joseph E. Aldy

This paper explores the relationships among per capita income, energy consumption, and carbon dioxide (CO2) emissions by focusing on a set of economies at advanced stages of development, the U.S. states. Energy consumption and emissions grew 50Ð60 percent on average over the 1960Ð1999 period. The statesÕ per capita energy consumption and emissions have grown on average 2 percent annually. The energy consumption income elasticity is positive but decreasing in income, although energy production takes an inverted-U shape, reflecting the electricity imports among high income states. The standard CO2 measure, corresponding to energy production, is characterized by an inverted-U environmental Kuznets curve. Adjusting emissions for interstate electricity trade yields an emissions-income relationship that peaks and plateaus. The carbon intensity of energy declines with income for total energy consumption and the industrial, residential, and commercial sectors.

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Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume 28 (2007)
Issue (Month): Number 1 ()
Pages: 91-112

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Handle: RePEc:aen:journl:2007v28-01-a05
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  1. Rothman, Dale S., 1998. "Environmental Kuznets curves--real progress or passing the buck?: A case for consumption-based approaches," Ecological Economics, Elsevier, vol. 25(2), pages 177-194, May.
  2. Randall Lutter, 2000. "Developing Countries' Greenhouse Emmissions: Uncertainty and Implications for Participation in the Kyoto Protocol," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 93-120.
  3. Kenneth B. Medlock III & Ronald Soligo, 2001. "Economic Development and End-Use Energy Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-105.
  4. Rossana Galli, 1998. "The Relationship Between Energy Intensity and Income Levels: Forecasting Long Term Energy Demand in Asian Emerging Countries," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 85-105.
  5. Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 29-57.
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