Using data on energy-related CO2 emissions and correcting for interstate electricity sales, we find several factors can lead to higher emissions: Sparsely populated states with low gasoline prices and little public transportation use have high transportation emissions. States where oil is a common heating fuel, the average income is high, and the climate is cold have high emissions from residential heating. States that generate much of their power from coal and have a hot, humid climate and low electricity prices have high residential electricity emissions. The key policy variables we identify are the prices of gasoline and electricity, and public transportation use.

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