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The CO2 Content of Consumption Across U.S. Regions: A Multi-Regional Input-Output (MRIO) Approach

Justin Caron, Gilbert E. Metcalf, and John Reilly

Year: 2017
Volume: Volume 38
Number: Number 1
DOI: 10.5547/01956574.38.1.jcar
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Abstract:
Using a multi-regional input-output (MRIO) framework, we estimate the direct and indirect carbon dioxide (CO2) content of consumption across regions of the United States. We improve on existing estimates by accounting for emissions attributable to domestically and internationally imported goods using data describing bilateral trade between U.S. states and with international countries and regions. This paper presents two major findings. First, attributing emissions to states on a consumption basis leads to very different state-level emissions responsibilities than when attributed on a production basis; for example, California's emissions are over 25 percent higher. Second, heterogeneity of emissions across trading partners significantly affects the indirect emissions intensity of consumption (kg of carbon per $ of consumption), so regional differences in intensity across the U.S. go well beyond direct energy consumption. These findings have implications for evaluating the distributional impacts of national climate policies and for understanding differing incentives to implement state-level policies.



The Price Elasticity of Electricity Demand in the United States: A Three-Dimensional Analysis

Paul J. Burke and Ashani Abayasekara

Year: 2018
Volume: Volume 39
Number: Number 2
DOI: 10.5547/01956574.39.2.pbur
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Abstract:
In this paper we employ a dataset of three dimensions - state, sector, and year - to estimate the short- and long-run price elasticities of state-level electricity demand in the United States. Our sample covers the period 2003-2015. We contribute to the literature by employing instrumental variable estimation approaches, using the between estimator, and pursuing panel specifications that enable us to control for multiple dimensions of fixed effects. We conclude that state-level electricity demand is very price inelastic in the short run, with a same-year elasticity of -0.1. The long-run elasticity is near -1, larger than often believed. Among the sectors, it is industry that has the largest long-run price elasticity of demand. This appears to in part be due to electricity-intensive industrial activities clustering in low-price states.



Factors Affecting Renters' Electricity Use: More Than Split Incentives

Rohan Best, Paul J. Burke, Shuhei Nishitateno

Year: 2021
Volume: Volume 42
Number: Number 5
DOI: 10.5547/01956574.42.5.rbes
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Abstract:
This paper uses data from the 2015 Residential Energy Consumption Survey to explore the extent to which renters’ electricity use in the United States exceeds that of otherwise similar non-renters. Renting households are found to use approximately 9% more electricity than non-renters when controlling for location, socioeconomic, and many appliance-quantity controls. There are multiple factors that explain this extra electricity use, including inferior energy efficiency of appliances, behavioral factors, differences in bill payment responsibilities, and additional reliance by renters on electric space and water heaters. The paper finds that none of these factors are dominant. The phenomenon of renters’ (conditionally) higher electricity use is thus best understood as one that emerges from multiple sources.





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