Pennsylvania stands as a pivotal state in the American energy landscape, defined by a deep heritage as a major producer and consumer of fossil fuels. This legacy has powered its industries and communities for generations, but it also presents a formidable challenge in an era of accelerating climate change. Pennsylvania is therefore confronted with a defining question: how to reconcile its climate ambitions with the economic realities of its industrial base and the affordability needs of its citizens, a tension that can only be resolved through pragmatism.
Pennsylvania’s energy consumption and emissions per person are close to the national average, according to data from the U.S. Energy Information Administration (see Fig. 1). Coal fired generation has been cut by 90% since 2005, with nearly all electricity now coming from gas and nuclear, reducing emissions from the power sector (see Fig. 2). Residential electricity prices are slightly above average, but consumption is well below, keeping bills in check. Total energy spending per person on electricity, gas, and gasoline is about 5% below the national average (see Fig. 3). But like other states in the PJM Interconnection, growing demand from data centers and capacity shortages are putting upward pressure on power prices.
Pennsylvania’s total emissions rank in line (4th) with its population (5th) and the size of its economy (6th). But the state has been more successful than most in lowering them: Emissions were cut to 201 million metric tons in 2023 from 276 million in 2005. The decline was significantly faster (1.9% per year) than the country as a whole (1.2% per year), mostly because gas has replaced coal-fired electricity generation while population growth has been slow.
Emissions are relatively high given the size of the economy. Pennsylvania’s principal economic activities are finance, insurance, real estate, and professional and business services, which are not energy intensive. But chemicals, oil and gas extraction, mining, food manufacturing, metals,
and machinery are also significant and use far more energy. The state emitted 251 tons for every $1 million of output in 2023, down from 450 tons in 2005, after adjusting for inflation. Emissions per $1 million of output were the 23rd highest in the country and well above the
national average (211 tons). Pennsylvania emits almost three times as much CO₂ as New York and twice as much as Connecticut to produce the same amount of economic output.
The state has made slightly faster progress than most others in reducing the carbon intensity of its energy system (see Fig. 4). Fossil fuels accounted for 78% of primary energy consumption in 2023, down only marginally from 81% in 2025, but there has been a shift to lower-emission gas from oil and especially coal. As a result, Pennsylvania emitted 46 metric tons of CO₂ for every 1
billion British thermal units of energy supplied in 2023, down from 61 tons in 2005. Carbon intensity was well above low-carbon leaders Vermont (38 tons), New Hampshire (39 tons), and South Carolina (40 tons), but 9% below the national average (51 tons).
Pennsylvania is the country’s third-largest electricity generator (after Texas and Florida), and it exports more surplus power to neighboring states than any other. Fossil fuels accounted for 65% of generation in 2023, a slight increase from 63% in 2005. But coal-fired generation has been slashed by 90%, replaced by lower-emission gas. Fossil fuels retained their market share for two reasons: First, while the state remains the second-highest nuclear generator in the country after Illinois, production from that source has remained flat over time. Meanwhile, renewable growth has been slow: The state uses little hydro, wind, or solar power, with them accounting for just 4% of its electricity generated in 2023.
Pennsylvania’s energy consumption is in line with the national average, making the state something of a bellwether. Consumption per person (277 million BTUs) was indistinguishable from the national average (278 million BTUs) in 2023. But energy efficiency is low. Energy consumption per $1 million of output was 9% above the national average. Since 2005, the state has been falling further behind, with consumption per unit of output declining more slowly (1.9% per year) than across the country as a whole (2.2% per year).
