Energy intensity: Deindustrialization, composition, prices, and policies in U.S. states

Arik Levinson ()

Resource and Energy Economics, 2021, vol. 65, issue C

Abstract: This paper uses the historical experience of U.S. states to examine the reasons why energy intensity has declined in some places more than in others. In aggregate, U.S. energy per dollar of GDP declined 34 percent between 1997 and 2018, but across states the decline varied from 9 percent in Iowa to 52 percent in Washington State. I show that none of this variation is explained by either deindustrialization or the changing composition of states’ industrial sectors. Although some U.S. state policies are significantly correlated with these changes, they are not correlated in a way that explains the changing overall state energy intensities. Energy intensity declines do not appear to be a result of leakage to other states or countries and have not been associated with slower economic growth.

Keywords: Energy taxes; Energy intensity; Deccomposition; Policy (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:65:y:2021:i:c:s0928765521000282

DOI: 10.1016/j.reseneeco.2021.101243

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