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A carbon footprint proportional to expenditure - A case for Norway?

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  • Isaksen, Elisabeth T.
  • Narbel, Patrick A.

Abstract

Motivated by the importance of consumption as an underlying driver of CO2 emissions, we examine the link between consumption and CO2 emissions for Norwegian households. The main goal is to investigate whether there is a decoupling of consumption expenditures and the environmental impact as we move up the income ladder. By combining a 2007 Norwegian consumer expenditure survey with emission coefficients from an environmental input-output model, reflecting emissions embodied in both domestically produced and imported goods and services, we calculate the per capita carbon footprint. The results from the analysis suggest that the per capita carbon footprint is directly proportional to expenditure with an estimated elasticity close to unity, implying no decoupling. The finding is partly driven by a near zero-emission power sector, which leads to comparatively low emissions embodied in domestically-produced goods and services.

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  • Isaksen, Elisabeth T. & Narbel, Patrick A., 2017. "A carbon footprint proportional to expenditure - A case for Norway?," Ecological Economics, Elsevier, vol. 131(C), pages 152-165.
    • Handle: RePEc:eee:ecolec:v:131:y:2017:i:c:p:152-165
    DOI: 10.1016/j.ecolecon.2016.08.027
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    More about this item

    Keywords

    Carbon footprint; CO2 emissions; Consumption; International trade; Decoupling;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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