This paper studies the implications of current energy prices for future energy efficiency and climate policy. Using U.S. Census microdata and quasi-experimental variation in energy prices, we first show that manufacturing plants that open when electricity prices are low consume more energy throughout their lifetime, regardless of current electricity prices. We then estimate that a persistent bias of technological change toward energy can explain the long-term effects of entry-year electricity prices on energy intensity. Overall, this “technology lock-in” implies that increasing entry-year electricity prices by 10% would decrease a plant’s energy intensity of production by 3% throughout its lifetime.

Others in Series

Working Paper

The Gender Pay Gap and Its Determinants Across the Human Capital Distribution

June 2023

Author ARIEL J. BINDER, AMANDA ENG, KENDALL HOUGHTON, AND ANDREW FOOTE

Working Paper Number CES-23-31

This study links American Community Survey data and postsecondary transcript records to examine how the gender pay varies across education levels.

Working Paper

Virtual Charter Students Have Worse Labor Market Outcomes as Young Adults

June 2023

Author PAUL Y. YOO, THURSTON DOMINA, ANDREW MCEACHIN, LEAH CLARK, HANNAH HERTENSTEIN, AND ANDREW M. PENNER

Working Paper Number CES-23-32

Despite growing demand for virtual charter schools, analysis using linked education and earnings records suggest long-term negative consequences for students.

Working Paper

The Local Origins of Business Formation

July 2023

Author EMIN DINLERSOZ, TIMOTHY DUNNE, JOHN HALTIWANGER, AND VERONIKA PENCIAKOVA

Working Paper Number CES-23-34

Using business applications, we analyze the spatial disparity in the creation of business ideas and the formation of new employer startups from these ideas.

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Page Last Revised - July 17, 2023

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