State-Level Changes in Energy Intensity and Their National Implications

State-Level Changes in Energy Intensity and Their National Implications

Mark Bernstein
Kateryna Fonkych
Sam Loeb
David Loughran
Copyright Date: 2003
Edition: 1
Published by: RAND Corporation
Pages: 118
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  • Book Info
    State-Level Changes in Energy Intensity and Their National Implications
    Book Description:

    The 2001 National Energy Policy calls for continued reductions in energy intensity (energy consumption per dollar of gross economic output). This study was part of an effort to identify state-level factors that may contribute to efficient energy use nationwide. The authors examined changes in energy intensity in 48 states and in the states' energy-consuming sectors from 1977 through 1999. Some factors that may explain differences in states' energy intensity are energy prices, new construction, capacity utilization, population, climate, tech innovations, and government energy policies.

    eISBN: 978-0-8330-3600-1
    Subjects: Technology

Table of Contents

  1. Front Matter
    (pp. i-ii)
  2. Preface
    (pp. iii-iv)
  3. Table of Contents
    (pp. v-vi)
  4. Figures
    (pp. vii-viii)
  5. Tables
    (pp. ix-x)
  6. Summary
    (pp. xi-xiv)
  7. Acknowledgments
    (pp. xv-xvi)
  8. Acronyms
    (pp. xvii-xviii)
  9. 1. Introduction
    (pp. 1-6)

    The National Energy Policy (NEP) released in 2001 provides more than 100 recommendations from the Bush administration on energy-related policy. As part of the NEP, the U.S. Department of Energy (DOE) is endeavoring to identify factors at the state level, including the states’ energy-related policies and programs that have contributed to efficient energy use over the past two decades.

    The NEP, among its other recommendations, calls for continued reductions inenergy intensity, which is typically defined asenergy consumption per dollar of gross economic output. For this state-level study, we measured energy intensity asenergy use per dollar of gross...

  10. 2. State-Level Trends in Energy Intensity
    (pp. 7-12)

    States vary significantly in how they use energy, which is well illustrated by the changes in energy use by state over the past two decades. Figure 2.1 graphs the annual changes in energy intensity for the 48 contiguous states¹ from 1977 through 1999 (starting in 1977 at 100 percent for all states).² In absolute terms, energy intensity varies substantially by state. In 1999, energy intensity for each state ranged from 5 million Btus (5 mmbtu) to 30 mmbtu per dollar of GSP. The magnitude and direction of change in energy intensity also vary significantly among states, with the states’ energy...

  11. 3. Factors Affecting Energy Intensity
    (pp. 13-18)

    A large body of literature addresses the measurement of energy efficiency and energy intensity.¹ In this chapter, we discuss various factors related to measuring changes in energy intensity.

    As we mentioned earlier, energy analysts typically use energy use per dollar of gross domestic product (GDP) as a measure of energy intensity. In many cases, analysts and policymakers disaggregate energy use to examine energy intensity for each of the four major energy-consuming sectors—residential, commercial, industrial, and transportation. These earlier studies have used various measures of energy intensity including indicators of demand, such as energy use per capita for residential buildings,...

  12. 4. Modeling Energy Intensity
    (pp. 19-22)

    The primary goal of this study is to measure how energy intensity varies across and within states net of the effects of energy prices and other measured determinants of energy intensity. To this end, we model energy intensity as a function of four components:

    Measured variables that vary across and within states over time (e.g., energy prices, the economic structure, industrial capacity use, investment in new capital, population, or climate)

    Fixed differences across states—i.e., unmeasured factors that are fixed in time but vary across states

    An aggregate time trend—i.e., unmeasured factors common to all states

    A random disturbance...

  13. 5. Impact of Factors and Common Effects on Energy Intensity
    (pp. 23-32)

    In this chapter, we present some general findings from our analysis of state-level trends in energy intensity over the past two decades. (Detailed data on our regression analysis of changes in energy intensity for each state can be found in Appendix D.) We first begin by presenting information on overall patterns of total energy consumption and the factors that affect changes in energy intensity. We then present our findings on factors that impact energy intensity and their common effects for each of the four energy-consuming sectors. Finally, we compare the total and sector-specific energy intensity changes in 1977–1987 and...

  14. 6. Applying the Analysis Results to Examples of Energy Intensity Outcomes
    (pp. 33-36)

    The results of the analysis presented in Chapter 5 can be interpreted in a variety of ways. In this chapter, we present some examples of how the data and regression analysis described in this report can be used to explain trends in energy intensity at the state level. We present examples from the industrial, commercial, and residential sectors of selected states.

    For each example, we examine the change in energy intensity, the relevant factors, the common effects, and the residual energy intensity. The change in energy intensity is composed of the factor effect plus the common effect plus the residual...

  15. 7. Ranking the States with the Greatest Energy Intensity and Residual Effect Reductions
    (pp. 37-46)

    In this chapter, we report on the states that had the greatest reductions in energy intensity and residuals over the period of our study. (More-detailed information on the energy intensity rankings of each state is presented in Appendix D.) For each of the energy-consuming sectors, we list the top-ranked states in terms of actual reductions in energy intensity and reductions in residuals. We also examine those states with factor effects that one would expect would lead to increases in energy intensity.¹

    Table 7.1 lists the states with the largest energy intensity reductions and residual reductions over the subperiods 1977–1987...

  16. 8. What Would Happen to U.S. Energy Intensity If All States Replicated the Top-Ranked or Bottom-Ranked States?
    (pp. 47-50)

    In this report, we showed that over the past couple of decades there has been substantial variation in energy intensity trends across the 48 contiguous states and among states within the four energy-consuming sectors. We have also highlighted the various factors that have affected the level of changes in energy intensity over the study period. An understanding of why some states have reduced their energy intensity significantly more than all states on average provides a basis for further study on how energy intensity might be reduced nationwide. This analysis is the first in a series of analyses that the DOE...

  17. 9. Conclusions and Thoughts for Future Analysis
    (pp. 51-52)

    We drew four general conclusions from the analysis presented in this report:

    Energy intensity has varied significantly among the 48 contiguous states over the past two decades.

    There are differences both within and across states in how energy intensity has changed over time.

    A number of critical factors impact energy intensity.

    It is possible to identify states that have had reductions in energy intensity that are greater than the average reduction for all states.

    The results from this study suggest that there are opportunities for most states to achieve greater reductions in energy intensity, as suggested by the performance of...

  18. Appendix A Data Sources
    (pp. 53-58)
  19. Appendix B Regression Analysis Results
    (pp. 59-72)
  20. Appendix C Methodology for Calculating the What-Ifs in Chapter 8
    (pp. 73-78)
  21. Appendix D Detailed Results of Energy Intensity Analysis
    (pp. 79-92)
  22. Bibliography
    (pp. 93-98)