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

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  • Levinson, Arik

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.

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  • Levinson, Arik, 2021. "Energy intensity: Deindustrialization, composition, prices, and policies in U.S. states," Resource and Energy Economics, Elsevier, vol. 65(C).
    • Handle: RePEc:eee:resene:v:65:y:2021:i:c:s0928765521000282
    DOI: 10.1016/j.reseneeco.2021.101243
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    References listed on IDEAS

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    2. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2022. "Technology Lock-In and Optimal Carbon Pricing," CESifo Working Paper Series 9762, CESifo.
    3. Jonathan T. Hawkins-Pierot & Katherine R. H. Wagner, 2023. "Technology Lock-In and Costs of Delayed Climate Policy," Working Papers 23-33, Center for Economic Studies, U.S. Census Bureau.
    4. Ruslan Kostyrko & Tetiana Kosova & Lidiia Kostyrko & Liudmyla Zaitseva & Oleksandr Melnychenko, 2021. "Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit," Energies, MDPI, vol. 14(16), pages 1-17, August.

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