The impact of energy price shocks on US local industries: A state-level analysis
In this study, the researchers use annual panel data for the 50 US States to examine how local industries have adapted to energy price changes from 2001 to 2019. They estimate a recursive dynamic system to model how energy prices affect output both directly and indirectly through induced capital adjustment and energy intensity. They find that energy price increases reduce local GDP in the short run but also lead to long-term increases in energy efficiency.
Authors: Minsu Kim and Stephan J. Goetz
Publication: Energy Economics Date Published: July 15, 2026