Subnational Trade Flows and State-Level Energy Intensity

Pandej Chintrakarn () and Daniel Millimet
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Pandej Chintrakarn: SMU

No 601, Departmental Working Papers from Southern Methodist University, Department of Economics

Abstract: In one strand of research, analysts examine trends in and the determinants of energy usage and intensity. In a second strand, researchers analyze the impact of trade flows on environmental outcomes. Recently, Cole (2006) bridges this gap, analyzing the impact of trade intensity on energy usage utilizing panel data at the country level. Here, we analyze the impact of subnational trade flows across U.S. states on state-level energy usage and intensity, controlling for the endogeneity of trade flows. Our findings indicate that an expansion of subnational trade at worst has no impact on state-level energy usage, and may actually reduce energy usage (contrary to Cole's country-level findings), although the impacts are not uniform across sectors.

Keywords: Bilateral Trade; Energy Intensity; Pollution Haven Hypothesis (search for similar items in EconPapers)
JEL-codes: F18 Q4 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2006-12
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:smu:ecowpa:0601

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