Regional Patterns of U.S. Household Carbon Emissions

Climatic Change, September 2009

17 Pages Posted: 10 Oct 2009

See all articles by William A. Pizer

William A. Pizer

Duke University

James N. Sanchirico

University of California, Davis - Environmental Science and Policy; Resources for the Future; Motu Economic and Public Policy Research Trust

Michael B. Batz

Resources for the Future

Date Written: March 2009

Abstract

Market-based policies to address fossil fuel-related externalities including climate change typically operate by raising the price of those fuels. Increases in energy prices have important consequences for a typical U.S. household that spent almost $4,000 per year on electricity, fuel oil, natural gas, and gasoline in 2005. A key question for policymakers is how these consequences vary over different regions and subpopulations across the country - especially as adjustment and compensation programs are designed to protect more vulnerable regions. To answer this question, we use non-publicly available data from the U.S. Consumer Expenditure Survey over the period 1984-2000 to estimate long-run geographic variation in household use of electricity, fuel oil, natural gas, and gasoline, as well as the associated incidence of a $10 per ton tax on carbon dioxide (ignoring behavioral response). We find substantial variation: incidence from the tax range from $97 dollars per year per household in New York County, New York to $235 per year per household in Tensas Parish, Louisiana. This variation can be explained by differences in energy use, carbon intensity of electricity generation, and electricity regulation.

JEL Classification: Q2

Suggested Citation

Pizer, William A. and Sanchirico, James N. and Batz, Michael B., Regional Patterns of U.S. Household Carbon Emissions (March 2009). Climatic Change, September 2009. Available at SSRN: https://ssrn.com/abstract=1480408

William A. Pizer

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

James N. Sanchirico (Contact Author)

University of California, Davis - Environmental Science and Policy ( email )

One Shields Avenue
Davis, CA 95616
United States
(530) 754-9883 (Phone)
(530) 752-3350 (Fax)

HOME PAGE: http://www.des.ucdavis.edu/faculty/Sanchirico.html

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States

Motu Economic and Public Policy Research Trust ( email )

Level 1, 93 Cuba Street
P.O. Box 24390
Wellington, 6142
New Zealand

Michael B. Batz

Resources for the Future ( email )

1616 P Street, NW
Washington, DC 20036
United States
202-328-5020 (Phone)
202-328-5137 (Fax)

HOME PAGE: http://www.rff.org

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