Place-based climate policy in the United States

Grant description:

This project explores whether, as an empirical matter, people have constrained choice sets in energy consumption due to where they live, and if that, in turn, may mean that traditional models of the efficiency of carbon taxation are incorrect. The researcher will decompose the spatial heterogeneity in carbon emissions into a component driven by individual preferences and a component driven by place. Using U.S. Census data, the American Community Survey, and the Longitudinal Employer-Household Dynamics, among other data sources, the author explores how factors such as climate, income inequality, segregation, and public disinvestment impact place-based heterogeneity. Since so much emission heterogeneity is tied to income, there are clear implications for how this could impact and be impacted by inequality. Findings have the potential to inform our understanding of how carbon taxes may need to be accompanied by rezoning or other policies.