What Drives Energy Use? Prices, Efficiency Policies, and the Demand Frontier

Fuente: arXiv
Saved in:
Bibliographic Details
Main Authors: Benatia, David, Molinié, Rémy, Pineau, Pierre-Olivier
Format: Preprint
Published: 2026
Subjects:
Online Access:
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866908961676984320
author Benatia, David
Molinié, Rémy
Pineau, Pierre-Olivier
author_facet Benatia, David
Molinié, Rémy
Pineau, Pierre-Olivier
contents What drives cross-state differences in U.S. energy consumption? We combine LMDI decomposition, stochastic frontier analysis, and variable-importance methods on a panel of 50 states plus DC over the 2006--2022 period. The observed 12.8% decline in per capita energy use is driven almost entirely by intensity improvements. A variance decomposition attributes 63% of cross-state variation in log energy use to the demand frontier, 34\% to inefficiency above it, and 3% to noise. Within the frontier, energy prices account for roughly 26% of cross-state variation and state efficiency policies for about 13%, while GDP and climate together explain only around 10\%. Efficiency policies also operate through a second channel by reducing inefficiency, adding a further 6 percentage points to their total contribution. The results suggest that pricing and regulation are the primary drivers of cross-state energy use differences.
format Preprint
id arxiv_https___arxiv_org_abs_2604_12112
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle What Drives Energy Use? Prices, Efficiency Policies, and the Demand Frontier
Benatia, David
Molinié, Rémy
Pineau, Pierre-Olivier
General Economics
Economics
What drives cross-state differences in U.S. energy consumption? We combine LMDI decomposition, stochastic frontier analysis, and variable-importance methods on a panel of 50 states plus DC over the 2006--2022 period. The observed 12.8% decline in per capita energy use is driven almost entirely by intensity improvements. A variance decomposition attributes 63% of cross-state variation in log energy use to the demand frontier, 34\% to inefficiency above it, and 3% to noise. Within the frontier, energy prices account for roughly 26% of cross-state variation and state efficiency policies for about 13%, while GDP and climate together explain only around 10\%. Efficiency policies also operate through a second channel by reducing inefficiency, adding a further 6 percentage points to their total contribution. The results suggest that pricing and regulation are the primary drivers of cross-state energy use differences.
title What Drives Energy Use? Prices, Efficiency Policies, and the Demand Frontier
topic General Economics
Economics
url https://arxiv.org/abs/2604.12112