Tag: energy

Energy price shocks slow state economies; spur energy efficiency investments

July 17, 2026

Rising energy prices in the U.S. reduce the economic output of states, but they also set in motion investments in more efficient equipment and technologies that partially offset those output losses over time, according to a new study by NERCRD researchers.

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The impact of energy price shocks on US local industries: A state-level analysis

July 15, 2026

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.