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Divergence in State-Level Per Capita Carbon Dioxide Emissions

  • Joseph E. Aldy

This paper addresses the question of whether income convergence is sufficient for per capita carbon dioxide (CO2) emissions convergence by focusing on a set of advanced economies, the U.S. states. I undertake a variety of cross-sectional and stochastic convergence tests with two novel measures of 1960 to 1999 state-level CO2 emissions per capita: production (pre-electricity trade) CO2 and consumption (post-electricity trade) CO2, and with income per capita. Although incomes continue to converge, I find stark divergence in production CO2 per capita and no evidence of convergence for consumption CO2 per capita. Forecasts of future distributions show little convergence in emissions.

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File URL: http://le.uwpress.org/cgi/reprint/83/3/353
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Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 83 (2007)
Issue (Month): 3 ()
Pages: 353-369

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Handle: RePEc:uwp:landec:v:83:y:2007:i:3:p:353-369
Contact details of provider: Web page: http://le.uwpress.org/

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  1. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April.
  2. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
  3. Carlino, Gerald A. & Mills, Leonard O., 1993. "Are U.S. regional incomes converging? : A time series analysis," Journal of Monetary Economics, Elsevier, vol. 32(2), pages 335-346, November.
  4. Phu Nguyen Van, 2005. "Distribution Dynamics of CO2 Emissions," THEMA Working Papers 2005-10, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
  5. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
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  8. Mark Strazicich & John List, 2003. "Are CO 2 Emission Levels Converging Among Industrial Countries?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(3), pages 263-271, March.
  9. 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.
  10. Henderson, J Vernon, 1996. "Effects of Air Quality Regulation," American Economic Review, American Economic Association, vol. 86(4), pages 789-813, September.
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