The economic geography of fuel choice: The spatial nexus of consumer economics and carbon emissions is fundamental to effective decarbonization policy-making

Abstract

Many state and local governments are considering ways to decarbonize their building sectors. This study evaluates domestic heat pumps’ relative advantage over comparable natural gas-burning systems in terms of consumer economics and carbon impacts in 48 states, accounting for disparities in physical and market conditions that determine system’s use and costs. The results show that decarbonization policies are more likely to succeed in states where potential carbon benefits coincide with favorable consumer economics.