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Carbon Emissions in the U.S.: Factor Decomposition and Cross-State Inequality Dynamics

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  • Panos K. Pouliasis
  • Nikos C. Papapostolou
  • Michael N. Tamvakis
  • Ioannis C. Moutzouris

Abstract

This paper examines the determinants of inequality in the distribution of CO2 emissions across U.S. regions. We implement a factorial decomposition of CO2 per capita based on extended Kaya factors, that is, carbon intensity of fossil fuel consumption, energy mix, energy intensity of GDP, economic growth in terms of labor productivity and employment rate. Results reveal that U.S. states display marked differences in most factors. We identify energy intensity as the main source of emissions inequality. Based on the within and between group inequality components we also explore the effect of geographical, geological, climatic and human development partitions of U.S. states’ groups. Findings indicate that the within-group inequality had been the main contributor to the whole inequality. Finally, some economic policy implications are also discussed; explaining the unequal distribution of emissions is vital to establish differentiated targets and work towards successful mitigation proposals.

Suggested Citation

  • Panos K. Pouliasis & Nikos C. Papapostolou & Michael N. Tamvakis & Ioannis C. Moutzouris, 2023. "Carbon Emissions in the U.S.: Factor Decomposition and Cross-State Inequality Dynamics," The Energy Journal, , vol. 44(6), pages 135-162, November.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:6:p:135-162
    DOI: 10.5547/01956574.44.6.ppou
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    References listed on IDEAS

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    1. Madsen, Jakob B. & Islam, Md. Rabiul & Doucouliagos, Hristos, 2018. "Inequality, financial development and economic growth in the OECD, 1870–2011," European Economic Review, Elsevier, vol. 101(C), pages 605-624.
    2. Eskander, Shaikh M.S.U. & Nitschke, Jakob, 2021. "Energy use and CO2 emissions in the UK universities: an extended Kaya identity analysis," LSE Research Online Documents on Economics 110764, London School of Economics and Political Science, LSE Library.
    3. Duro, Juan Antonio & Padilla, Emilio, 2006. "International inequalities in per capita CO2 emissions: A decomposition methodology by Kaya factors," Energy Economics, Elsevier, vol. 28(2), pages 170-187, March.
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