Intergenerational transfers in US county-level CO2 emissions, 2007

Abstract

Research has shown that increases in carbon emissions and resulting climate change are not driven by population size alone, but also associated with industrialization, urbanization, and economic development. Further, industrialization and development may, in part, be driven by changing demographic structure, and in particular the process of population aging. Fluctuations in age composition shape aggregate production and consumption. Viewed through this lens, the carbon dioxide emissions of an analytical unit (county, province, state, nation) can be considered a product of its age composition. This analysis tests several demographic theories of age-specific production and consumption on US county-level carbon dioxide emissions. Using a modified STIRPAT framework, econometric estimates identify a positive correlation between county-level labor force participation and total carbon dioxide emissions. These effects are a result of general economic activity as opposed to growth only in energy intensive industrial sectors, a relationship that is widely hypothesized but under-developed in carbon emission estimates. In addition, results show larger households are associated with lower aggregate emissions, confirming the hypothesis that areas of declining household size will experience higher future emissions. In general, this research demonstrates the importance of adding nuance to emission estimates by integrating demographic dimensions beyond population size and growth.