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Green retirement: The impact of retirement on carbon emissions through consumption and income dynamics

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  • Huang, Wei
  • Lei, Xiaoyan
  • Zhang, Chunfeng

Abstract

This paper investigates the impact of retirement on carbon emissions, using China's compulsory retirement age policy as an exogenous source of variation. By applying a regression discontinuity design (RDD) to individual-level data, we identify a "green retirement" effect, where retirees reduce their carbon emissions due to income declines and changes in consumption behavior. For men, this reduction primarily stems from a decrease in consumption quantity, while for women, both a reduction in quantity and a shift toward more environmentally friendly consumption play a role. The effect is more pronounced among individuals with higher educational attainment, indicating that socioeconomic factors influence the environmental impact of retirement. These results suggest that demographic shifts could support sustainability efforts by aligning retirement policies with environmental goals.

Suggested Citation

  • Huang, Wei & Lei, Xiaoyan & Zhang, Chunfeng, 2025. "Green retirement: The impact of retirement on carbon emissions through consumption and income dynamics," Journal of Comparative Economics, Elsevier, vol. 53(3), pages 727-753.
    • Handle: RePEc:eee:jcecon:v:53:y:2025:i:3:p:727-753
    DOI: 10.1016/j.jce.2025.04.002
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    Keywords

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    JEL classification:

    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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