Seeking a handle on climate change: Examining the comparative effectiveness of energy efficiency improvement and renewable energy production in the United States.

• Energy efficiency provides substantial carbon dioxide emissions reduction. • Renewable energy sources substantially influences carbon dioxide emissions. • Substantively, renewable energy is slightly more effective than energy efficiency. • Affluence tampers the effectiveness of energy efficiency and renewable energy. This study examines the comparative effectiveness of two important proposed solutions to climate change—energy efficiency improvement and the development and use of renewable energy sources. We focus specifically on their impacts on carbon dioxide emissions by conducting fixed effects regression analysis of panel data pertaining to U.S. states. The analysis reveals a negative relationship between both remedies and carbon dioxide emissions. Although the effects of these potential solutions are statistically equivalent, renewable energy production has a slight edge. Reflecting upon these findings and the larger environmental problem, we caution against exclusive reliance on efficiency improvement and renewable energy to the neglect of other important actions, such as lifestyle modifications. A broad range of social changes, which incorporate the remedies investigated in this paper, are needed to limit long-term global temperature increases to the desired level. [ABSTRACT FROM AUTHOR]