IDEAS home Printed from https://ideas.repec.org/a/spr/nathaz/v84y2016i1d10.1007_s11069-015-2067-1.html
   My bibliography  Save this article

Impact of household expenditures on CO2 emissions in China: Income-determined or lifestyle-driven?

Author

Listed:
  • Qian Wang

    (Beijing Institute of Technology
    Beijing Institute of Technology (BIT)
    Collaborative Innovation Center of Electric Vehicles in Beijing)

  • Qiao-Mei Liang

    () (Beijing Institute of Technology
    Beijing Institute of Technology (BIT)
    Collaborative Innovation Center of Electric Vehicles in Beijing)

  • Bing Wang

    (Beijing Institute of Technology
    Beijing Institute of Technology (BIT)
    Collaborative Innovation Center of Electric Vehicles in Beijing)

  • Fang-Xun Zhong

    (The Chinese University of Hong Kong)

Abstract

The aim of this paper is to analyze the relationship between household expenditure and CO2 emissions among different income groups of urban and rural households in China. Having employed the 2007 Social Accounting Matrix of China, this study examines the direct and indirect CO2 emissions caused by household demand. The results show that within both urban and rural households, the higher the income level is, the higher the per capita emissions are; the CO2 emissions per unit expenditure due to savings and taxes are generally much larger than those from consumption of goods and services; and these emissions per unit consumption expenditures mainly come from indirect emissions. To deeply explore the relationships between consumption patterns and CO2 emissions, two scenarios are established to eliminate the differences in income level and consumption propensity among different groups step by step. Main results indicate that (1) the income gap is the primary cause of the significant differences in emission levels among each group; (2) the difference in consumption propensity is also a notable reason; and (3) the rural higher income groups spend a larger share of their income on those carbon-intensive goods (e.g., electricity, transportation, energy products), thus making their consumption patterns more carbon-intensive, while for the urban, the consumption patterns of lower income groups are more carbon-intensive. Finally, policy recommendations on the reduction of household emissions are also made.

Suggested Citation

  • Qian Wang & Qiao-Mei Liang & Bing Wang & Fang-Xun Zhong, 2016. "Impact of household expenditures on CO2 emissions in China: Income-determined or lifestyle-driven?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 84(1), pages 353-379, November.
  • Handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-015-2067-1
    DOI: 10.1007/s11069-015-2067-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11069-015-2067-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2012. "Application of the Structural Decomposition Analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1135-1145.
    2. Das, Aparna & Paul, Saikat Kumar, 2014. "CO2 emissions from household consumption in India between 1993–94 and 2006–07: A decomposition analysis," Energy Economics, Elsevier, vol. 41(C), pages 90-105.
    3. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2012. "Social groups and CO2 emissions in Spanish households," Energy Policy, Elsevier, vol. 44(C), pages 441-450.
    4. Mona Chitnis & Lester Hunt, 2011. "Modelling UK household expenditure: economic versus noneconomic drivers," Applied Economics Letters, Taylor & Francis Journals, vol. 18(8), pages 753-767.
    5. Chitnis, Mona & Druckman, Angela & Hunt, Lester C. & Jackson, Tim & Milne, Scott, 2012. "Forecasting scenarios for UK household expenditure and associated GHG emissions: Outlook to 2030," Ecological Economics, Elsevier, vol. 84(C), pages 129-141.
    6. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2010. "The impact of household consumption patterns on emissions in Spain," Energy Economics, Elsevier, vol. 32(1), pages 176-185, January.
    7. Wei, Yi-Ming & Liu, Lan-Cui & Fan, Ying & Wu, Gang, 2007. "The impact of lifestyle on energy use and CO2 emission: An empirical analysis of China's residents," Energy Policy, Elsevier, vol. 35(1), pages 247-257, January.
    8. Brannlund, Runar & Ghalwash, Tarek & Nordstrom, Jonas, 2007. "Increased energy efficiency and the rebound effect: Effects on consumption and emissions," Energy Economics, Elsevier, vol. 29(1), pages 1-17, January.
    9. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9-10), pages 1082-1095, October.
    10. Liang, Qiao-Mei & Wei, Yi-Ming, 2012. "Distributional impacts of taxing carbon in China: Results from the CEEPA model," Applied Energy, Elsevier, vol. 92(C), pages 545-551.
    11. Starkey, Richard, 2012. "Personal carbon trading: A critical survey," Ecological Economics, Elsevier, vol. 73(C), pages 7-18.
    12. Zhao, Xiaoli & Li, Na & Ma, Chunbo, 2012. "Residential energy consumption in urban China: A decomposition analysis," Energy Policy, Elsevier, vol. 41(C), pages 644-653.
    13. Mette Wier & Manfred Lenzen & Jesper Munksgaard & Sinne Smed, 2001. "Effects of Household Consumption Patterns on CO2 Requirements," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 259-274.
    14. Feng, Zhen-Hua & Zou, Le-Le & Wei, Yi-Ming, 2011. "The impact of household consumption on energy use and CO2 emissions in China," Energy, Elsevier, vol. 36(1), pages 656-670.
    15. Chitnis, Mona & Hunt, Lester C., 2012. "What drives the change in UK household energy expenditure and associated CO2 emissions? Implication and forecast to 2020," Applied Energy, Elsevier, vol. 94(C), pages 202-214.
    16. Kim, Ji-Hyun, 2002. "Changes in consumption patterns and environmental degradation in Korea," Structural Change and Economic Dynamics, Elsevier, vol. 13(1), pages 1-48, March.
    17. Kerkhof, Annemarie C. & Benders, Ren M.J. & Moll, Henri C., 2009. "Determinants of variation in household CO2 emissions between and within countries," Energy Policy, Elsevier, vol. 37(4), pages 1509-1517, April.
    18. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    19. Starkey, Richard, 2012. "Personal carbon trading: A critical survey Part 2: Efficiency and effectiveness," Ecological Economics, Elsevier, vol. 73(C), pages 19-28.
    20. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
    21. Fan, Jing-Li & Liao, Hua & Liang, Qiao-Mei & Tatano, Hirokazu & Liu, Chun-Feng & Wei, Yi-Ming, 2013. "Residential carbon emission evolutions in urban–rural divided China: An end-use and behavior analysis," Applied Energy, Elsevier, vol. 101(C), pages 323-332.
    22. Lee, Sungwon & Lee, Bumsoo, 2014. "The influence of urban form on GHG emissions in the U.S. household sector," Energy Policy, Elsevier, vol. 68(C), pages 534-549.
    23. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
    24. Qiao-Mei Liang & Qian Wang & Yi-Ming Wei, 2013. "Assessing the Distributional Impacts of Carbon Tax among Households across Different Income Groups: The Case of China," Energy & Environment, , vol. 24(7-8), pages 1323-1346, December.
    25. Su, Bin & Ang, B.W., 2011. "Multi-region input–output analysis of CO2 emissions embodied in trade: The feedback effects," Ecological Economics, Elsevier, vol. 71(C), pages 42-53.
    26. Allcott, Hunt, 2011. "Social norms and energy conservation," Journal of Public Economics, Elsevier, vol. 95(9), pages 1082-1095.
    27. Malla, Sunil, 2013. "Household energy consumption patterns and its environmental implications: Assessment of energy access and poverty in Nepal," Energy Policy, Elsevier, vol. 61(C), pages 990-1002.
    28. Ming Zhang & Yan Song, 2015. "Exploring influence factors governing the changes in China’s final energy consumption under a new framework," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 78(1), pages 653-668, August.
    29. Druckman, Angela & Jackson, Tim, 2010. "The bare necessities: How much household carbon do we really need?," Ecological Economics, Elsevier, vol. 69(9), pages 1794-1804, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xueting Jin & Yu Li & Dongqi Sun & Jinzhou Zhang & Ji Zheng, 2019. "Factors Controlling Urban and Rural Indirect Carbon Dioxide Emissions in Household Consumption: A Case Study in Beijing," Sustainability, MDPI, Open Access Journal, vol. 11(23), pages 1-21, November.
    2. Zhang, Hongwu & Shi, Xunpeng & Wang, Keying & Xue, Jinjun & Song, Ligang & Sun, Yongping, 2020. "Intertemporal lifestyle changes and carbon emissions: Evidence from a China household survey," Energy Economics, Elsevier, vol. 86(C).
    3. Tian, Jing & Andraded, Celio & Lumbreras, Julio & Guan, Dabo & Wang, Fangzhi & Liao, Hua, 2018. "Integrating Sustainability Into City-level CO2 Accounting: Social Consumption Pattern and Income Distribution," Ecological Economics, Elsevier, vol. 153(C), pages 1-16.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:nathaz:v:84:y:2016:i:1:d:10.1007_s11069-015-2067-1. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Springer Nature Abstracting and Indexing). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.