The CO2 Content Of Consumption Across US Regions: A Multi-Regional Input-Output (MRIO) Approach

Justin Caron, Gilbert Metcalf and John Reilly

No 332496, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: We improve on existing estimates of the carbon dioxide (CO₂) content of consumption across regions of the United States. Using a multi-regional input-output framework which tracks both interstate and international trade, we estimate the direct and indirect CO₂ emissions attributable to domestically and internationally imported goods. We find that on average indirect emissions embodied in non-energy consumption goods and services account for 55% of total consumption-related emissions. In contrast to previous analyses using an input-output approach to track emissions from production to consumption, we find substantial heterogeneity in the indirect CO₂ intensity of consumption across regions. Importantly, this heterogeneity is quantitatively similar to the more easily observable heterogeneity in the CO₂ emissions attributable to direct fossil fuel and electricity consumption. These findings have important implications for the regional distributional impacts of a national climate policy as well as for understanding differing incentives to implement state-level or regional policies.

Keywords: Environmental Economics and Policy; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 38
Date: 2014
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Related works:
Journal Article: The CO 2 Content of Consumption Across U.S. Regions: A Multi-Regional Input-Output (MRIO) Approach (2017)
Journal Article: The CO2 Content of Consumption Across U.S. Regions: A Multi-Regional Input-Output (MRIO) Approach (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:332496

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