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The odd couple: The relationship between state economic performance and carbon emissions economic intensity

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  • Davidsdottir, B.
  • Fisher, M.

Abstract

Historical time trends indicate that both carbon and energy intensity have declined in the United States over the last several decades, while economic performance, as measured by per capita GSP, has improved. This observation indicates that it may be possible to reduce carbon intensity without a reduction in economic performance. This paper assesses using panel analysis, the empirical relationship between carbon emissions intensity and economic performance, and examines the direction of causality between the two variables. Data for the analysis covered 48 states, excluding Hawaii, Alaska, and Washington DC, from 1980 to 2000. The results indicate significant bi-directional relationship between carbon emissions intensity and state economic performance, both using an aggregate indicator for carbon emissions intensity, decomposed using Laspeyres indexes and disaggregated by sector. This implies that it should be possible to implement statewide and sector-specific policies to reduce energy and carbon intensity and at the same time improve economic performance.

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  • Davidsdottir, B. & Fisher, M., 2011. "The odd couple: The relationship between state economic performance and carbon emissions economic intensity," Energy Policy, Elsevier, vol. 39(8), pages 4551-4562, August.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:8:p:4551-4562
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    2. Wang, Shaojian & Wang, Jieyu & Fang, Chuanglin & Feng, Kuishuang, 2019. "Inequalities in carbon intensity in China: A multi-scalar and multi-mechanism analysis," Applied Energy, Elsevier, vol. 254(C).
    3. Gui, Shusen & Wu, Chunyou & Qu, Ying & Guo, Lingling, 2017. "Path analysis of factors impacting China's CO2 emission intensity: Viewpoint on energy," Energy Policy, Elsevier, vol. 109(C), pages 650-658.
    4. Yue-Jun Zhang & Zhao Liu & Huan Zhang & Tai-De Tan, 2014. "The impact of economic growth, industrial structure and urbanization on carbon emission intensity in China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(2), pages 579-595, September.
    5. Huan Zhang & Kangning Xu, 2016. "Impact of Environmental Regulation and Technical Progress on Industrial Carbon Productivity: An Approach Based on Proxy Measure," Sustainability, MDPI, vol. 8(8), pages 1-15, August.
    6. Roach, Travis, 2013. "A dynamic state-level analysis of carbon dioxide emissions in the United States," Energy Policy, Elsevier, vol. 59(C), pages 931-937.
    7. Rao, Guangming & Liao, Jiao & Zhu, Yanping & Guo, Lin, 2022. "Decoupling of economic growth from CO2 emissions in Yangtze River Economic Belt sectors: A sectoral correlation effects perspective," Applied Energy, Elsevier, vol. 307(C).
    8. Jie Zhang & Zhencheng Xing & Jigan Wang, 2016. "Analysis of CO 2 Emission Performance and Abatement Potential for Municipal Industrial Sectors in Jiangsu, China," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    9. Jianchang Lu & Weiguo Fan & Ming Meng, 2015. "Empirical Research on China’s Carbon Productivity Decomposition Model Based on Multi-Dimensional Factors," Energies, MDPI, vol. 8(4), pages 1-25, April.
    10. Li, Rongrong & Han, Xinyu & Wang, Qiang, 2023. "Do technical differences lead to a widening gap in China's regional carbon emissions efficiency? Evidence from a combination of LMDI and PDA approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 182(C).
    11. Ke Wang & Yujiao Xian & Yi-Ming Wei & Zhimin Huang, 2016. "Sources of carbon productivity change: A decomposition and disaggregation analysis based on global Luenberger productivity indicator and endogenous directional distance function," CEEP-BIT Working Papers 91, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    12. Yan, Junna & Zhao, Tao & Kang, Jidong, 2016. "Sensitivity analysis of technology and supply change for CO2 emission intensity of energy-intensive industries based on input–output model," Applied Energy, Elsevier, vol. 171(C), pages 456-467.

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