Journal
ENERGY ECONOMICS
Volume 40, Issue -, Pages 396-404Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.eneco.2013.07.021
Keywords
Energy economics; Carbon dioxide; Spatial econometrics
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We take advantage of a long panel data set to estimate the relationship between U.S. state-level carbon dioxide (CO2) emissions, economic activity, and other factors. We specify a reduced-form energy demand model to account for energy consumption activities that drive energy-related emissions. We contribute to the literature by exploring several spatial panel data models to account for spatial dependence between states.,Estimation results and rigorous diagnostic analysis suggest that: (1) economic distance plays a role in intra- and inter-state CO2 emissions; and (2) there are statistically significant, positive economic spillovers and negative price spillovers to state-level emissions. (C) 2013 Elsevier B.V. All rights reserved.
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