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The odd couple: The relationship between state economic performance and carbon emissions economic intensity

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  • Davidsdottir, B.
  • Fisher, M.

Abstract

Historical time trends indicate that both carbon and energy intensity have declined in the United States over the last several decades, while economic performance, as measured by per capita GSP, has improved. This observation indicates that it may be possible to reduce carbon intensity without a reduction in economic performance. This paper assesses using panel analysis, the empirical relationship between carbon emissions intensity and economic performance, and examines the direction of causality between the two variables. Data for the analysis covered 48 states, excluding Hawaii, Alaska, and Washington DC, from 1980 to 2000. The results indicate significant bi-directional relationship between carbon emissions intensity and state economic performance, both using an aggregate indicator for carbon emissions intensity, decomposed using Laspeyres indexes and disaggregated by sector. This implies that it should be possible to implement statewide and sector-specific policies to reduce energy and carbon intensity and at the same time improve economic performance.

Suggested Citation

  • Davidsdottir, B. & Fisher, M., 2011. "The odd couple: The relationship between state economic performance and carbon emissions economic intensity," Energy Policy, Elsevier, vol. 39(8), pages 4551-4562, August.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:8:p:4551-4562
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    1. repec:eee:enepol:v:109:y:2017:i:c:p:650-658 is not listed on IDEAS
    2. Yue-Jun Zhang & Zhao Liu & Huan Zhang & Tai-De Tan, 2014. "The impact of economic growth, industrial structure and urbanization on carbon emission intensity in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(2), pages 579-595, September.
    3. Ke Wang & Yujiao Xian & Yi-Ming Wei & Zhimin Huang, 2016. "Sources of carbon productivity change: A decomposition and disaggregation analysis based on global Luenberger productivity indicator and endogenous directional distance function," CEEP-BIT Working Papers 91, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    4. Jinying Li & Jianfeng Shi & Jinchao Li, 2016. "Exploring Reduction Potential of Carbon Intensity Based on Back Propagation Neural Network and Scenario Analysis: A Case of Beijing, China," Energies, MDPI, Open Access Journal, vol. 9(8), pages 1-17, August.
    5. Huan Zhang & Kangning Xu, 2016. "Impact of Environmental Regulation and Technical Progress on Industrial Carbon Productivity: An Approach Based on Proxy Measure," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-15, August.
    6. Yan, Junna & Zhao, Tao & Kang, Jidong, 2016. "Sensitivity analysis of technology and supply change for CO2 emission intensity of energy-intensive industries based on input–output model," Applied Energy, Elsevier, vol. 171(C), pages 456-467.
    7. Jie Zhang & Zhencheng Xing & Jigan Wang, 2016. "Analysis of CO 2 Emission Performance and Abatement Potential for Municipal Industrial Sectors in Jiangsu, China," Sustainability, MDPI, Open Access Journal, vol. 8(7), pages 1-15, July.
    8. Roach, Travis, 2013. "A dynamic state-level analysis of carbon dioxide emissions in the United States," Energy Policy, Elsevier, vol. 59(C), pages 931-937.
    9. Jianchang Lu & Weiguo Fan & Ming Meng, 2015. "Empirical Research on China’s Carbon Productivity Decomposition Model Based on Multi-Dimensional Factors," Energies, MDPI, Open Access Journal, vol. 8(4), pages 1-25, April.

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