Photoacoustic (PA) correlation spectroscopy offers some advantages over conventional correlation spectroscopy in that the PA detector requires no cooling. The method has been proposed earlier (Perlmutter, *et al) , but was not considered sensitive enough to warrant further work. In this study we consider Perlmutter's formulation and show how the sensitivity may be improved by including an electro optic phase modulator (EOPM) for modulation of the radiation.