Observing the interaction between energy generation carbon emissions and economic conditions could consider generation, intensity, and times of the day.

Abstract

Management of carbon emissions of regional electricity generation involves resolving much nuanced relationships. However, current studies pertaining to the relationship between energy and the economy utilize only quarterly and annual data and focus on the long-run relationship but are oblivious to temporal associations. This study takes the context of the State of Texas and utilizes per 15min of data between 2007 and 2020 to derive the monthly time series of life-cycle emissions, emissions factor, and energy generation. The study also divides each day into three portions (0:00-8:00, 8:00-16:00, and 16:00-24:00) in order to descend precision down to the hourly level. Impulse-response analysis indicates that (1) employment conditions impact emissions by affecting the amount of electric energy generated, while demographic (population as reflected by property price) tends to impact emissions by affecting the carbon intensity of electricity, and (2) the emissions produced during 0:00-8:00 display different reaction to fluctuation of regional economic conditions compared to emissions produced during other periods, the effect emanates from either energy generation fluctuation or emissions factor shocks. The broader implication of the findings lies in an emphasis on time-interval-specific analysis and concurrent consideration of both energy generation and emissions factors that can lead to optimized policy implementation results.