Download This PaperThe Distribution of Energy-Intensive Sectors in the US
CentER Working Paper No. 2011-075
31 Pages Posted: 30 Jun 2011
Date Written: June 28, 2011
Abstract
We study the influence of energy endowments on the location of energy-intensive industries. We use data on manufacturing sectors in 50 US states from 2002 until 2008, with detailed information on state endowments of coal, natural gas, oil and hydropower and sectoral fuel and electricity intensities. The effect of energy on industry location is statistically and economically significant. A one standard deviation increase in energy endowments per capita increases the activity of energy-intensive industries by about 20%.
Keywords: industry location, factor endowments, energy, Heckscher-Ohlin model
JEL Classification: F10, R12
Suggested Citation: Suggested Citation