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CARBON EMISSIONS ECONOMIC INTENSITY INDEX (CEEII)
Citation:
CARBON EMISSIONS ECONOMIC INTENSITY INDEX (CEEII).
Impact/Purpose:
The Carbon Emissions Economic Intensity Index (CEEII) measures carbon emissions in relation to the value of the production activities that generate those emissions. The goals of the CEEII are to provide insight into the role of carbon emissions in the overall contribution of value from a state’s economy and to aid in understanding the factors that contribute to (1) changes in carbon emissions economic intensity over time and (2) differences across states. To support understanding of the factors contributing to changes in carbon emissions or contributing to differences in emissions among states, the CEEII disaggregates emissions and economic activity by key energy-using economic sectors – electricity production, industry, commercial/ institutional, transportation – and reports emissions in relation to the value of economic activity in those sectors, defined as economic value added.
Description:
The core concept of the CEEII is to understand, at the state level, the carbon emissions from energy consumption in relation to the value of the activity that generates the emissions. The CEEII treats carbon emissions as an input to producing the activity’s value and assesses the intensity with which carbon emissions are used in generating that value. With the CEEII defined mathematically as carbon emissions divided by the value of the emission producing activity, a lower CEEII, all else equal, means less use of carbon emissions as an input to the value producing activity and thus lower intensity in the use of carbon emissions in producing that value. Assessing the CEEII over time provides insight into how carbon emissions are changing in relation to the value of the emission-producing activities and whether the state is becoming more or less carbon intensive in its use of carbon emissions to provide value. Comparing the CEEII across states – on the bases of both a single year and over time – provides insight into the differences among states in terms of carbon emissions economic intensity, and, in particular, how differences in the structural characteristics of their economies, in the mix of energy inputs, and in the efficiency of energy use, influence carbon emissions.