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

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  • Joseph E. Aldy

Abstract

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 50-60percent on average over the 1960-1999 period. The states’ 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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  • Joseph E. Aldy, 2007. "Energy and Carbon Dynamics at Advanced Stages of Development: An Analysis of the U.S. States, 1960-1999," The Energy Journal, , vol. 28(1), pages 91-112, January.
    • Handle: RePEc:sae:enejou:v:28:y:2007:i:1:p:91-112
    DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No1-5
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    1. Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
    2. 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.
    3. Ruth A. Judson & Richard Schmalensee & Thomas M. Stoker, 1999. "Economic Development and the Structure of the Demand for Commercial Energy," The Energy Journal, , vol. 20(2), pages 29-57, April.
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