Per capita carbon dioxide emissions vary dramatically among U.S. states, from a high of 76.5 mT CO₂ in Alaska to a low of 12.2 in Vermont. This article seeks to identify the underlying causes and possible policy interventions.

Using data on energy-related CO₂ emissions and correcting for interstate electricity sales, we find several factors can lead to higher emissions: Sparsely populated states with low gasoline prices and little public transportation use have high transportation emissions. States where oil is a common heating fuel, the average income is high, and the climate is cold have high emissions from residential heating. States that generate much of their power from coal and have a hot, humid climate and low electricity prices have high residential electricity emissions. The key policy variables we identify are the prices of gasoline and electricity, and public transportation use.

Download the working paper.