An analysis comparing the effects of fossil fuels and economic activity on state level CO2 production
Sullivan, Timothy M.
Thesis (M.P.P.)--Georgetown University, 2010.; Includes bibliographical references.; Text (Electronic thesis) in PDF format. Policies aimed at reducing CO2 emissions will necessarily make the production of CO2 more expensive. States with high per capita CO2 production will be more adversely affected by these policies. This study seeks to determine what economic activity and which forms of fossil fuel based electricity production are associated with high per capita CO2 production. Using data from the EIA, BEA, and US Census Bureau, a two way fixed effects regression, controlling for unobserved characteristics in individual states and in individual years, was run comparing the effects of the percentage of electricity a state generates using various fossil fuels, and economic factors. The analysis indicates that poor, rural states will face a heavier burden from any policy that makes CO2 more costly. Therefore, it is recommended that any policy that increases the cost of CO2 reimburse rural states, especially in ways that would increase the efficiency of electricity production in these states.
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