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Demographics and Emissions: The Life Cycle of Consumption Carbon Intensity

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  • Henrique S. Basso, Richard Jaimes, Omar Rachedi,
  • Richard Jaimes
  • Omar Rachedi

Abstract

The consumption carbon intensity – defined as the carbon emissions per unit of consumption – varies with age: it is hump-shaped over the life cycle, but it becomes flatter at high levels of income. We document this novel fact using U.S. household-level consumption data. This relationship does not hold only at the individual level, but also at the aggregate: we leverage information across U.S. states and countries to show that the carbon intensity of the economy de- pends on the population age structure. Consequently, policy changes that alter carbon prices affect relatively more middle-age individuals, and especially so in low-income economies.

Suggested Citation

  • Henrique S. Basso, Richard Jaimes, Omar Rachedi, & Richard Jaimes & Omar Rachedi, 2022. "Demographics and Emissions: The Life Cycle of Consumption Carbon Intensity," Vniversitas Económica, Universidad Javeriana - Bogotá, vol. 0(0), pages 1-25, November.
    • Handle: RePEc:col:000416:020566
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