A method for forming a three-dimensional reconstructed image acquires two dimensional measured radiographic projection images over a set of projection angles, wherein the measured projection image data is obtained from an energy resolving detector that distinguishes first and second energy bands. A volume reconstruction has image voxel values representative of the scanned object by back projection of the measured projection data. Volume reconstruction values are iteratively modified to generate an iterative reconstruction by repeating, for angles in the set of projection angles and for each of a plurality of pixels of the detector: generating a forward projection that includes calculating an x-ray spectral distribution at each volume voxel, calculating an error value by comparing the generated forward projection value with the corresponding measured projection image value, and adjusting one or more voxel values using the calculated error value and the x-ray spectral distribution. The generated iterative reconstruction displays.