IDEAS home Printed from https://ideas.repec.org/p/dic/wpaper/2016-01.html
   My bibliography  Save this paper

The Environmental Impact of Sharing: Household and Urban Economies in CO2 Emissions

Author

Listed:
  • Anders Fremstad

    (Economics Department, Colorado State University, Fort Collins)

  • Anthony Underwood

    () (Department of Economics, Dickinson College)

  • Sammy Zahran

    (Economics Department, Colorado State University, Fort Collins)

Abstract

Studies find that per capita carbon dioxide emissions (CO2) decrease with household size and urban density, so the demographic trends of declining household size and dense urbanization produce countervailing effects with respect to emissions. We posit that both trends operate on a common scaling mechanism realized through the sharing of carbon- intensive expenditures. With detailed data from the United States Consumer Expenditure Survey, we construct a dataset of CO2 emissions at the household level and leverage a unique measure of residential density to estimate household and urban economies. We find that dense urban areas have per capita emissions 23 percent lower than rural areas, and that adding an additional member to a household reduces per capita emissions by about 6 percent. We also show that household economies are about twice as large in rural as compared to dense urban areas. These results suggest that the carbon benefits of dense urbanization have the potential to offset the effects of declining household size.

Suggested Citation

  • Anders Fremstad & Anthony Underwood & Sammy Zahran, 2016. "The Environmental Impact of Sharing: Household and Urban Economies in CO2 Emissions," Working Paper Series 2016-01, Dickinson College, Department of Economics.
  • Handle: RePEc:dic:wpaper:2016-01
    as

    Download full text from publisher

    File URL: http://users.dickinson.edu/~coglianj/RePEc/dic/wpaper/WP2016_01.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Anders Fremstad, 2016. "Sticky Norms, Endogenous Preferences, and Shareable Goods," Review of Social Economy, Taylor & Francis Journals, vol. 74(2), pages 194-214, June.
    2. Glaeser, Edward L. & Kahn, Matthew E., 2010. "The greenness of cities: Carbon dioxide emissions and urban development," Journal of Urban Economics, Elsevier, vol. 67(3), pages 404-418, May.
    3. repec:eee:jotrge:v:28:y:2013:i:c:p:22-29 is not listed on IDEAS
    4. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    5. Glaeser, Edward L. & Kahn, Matthew E., 2004. "Sprawl and urban growth," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 56, pages 2481-2527 Elsevier.
    6. Liddle, Brantley, 2013. "Urban density and climate change: a STIRPAT analysis using city-level data," Journal of Transport Geography, Elsevier, vol. 28(C), pages 22-29.
    7. Schröder, Carsten & Rehdanz, Katrin & Narita, Daiju & Okubo, Toshihiro, 2015. "The decline in average family size and its implications for the average benefits of within‐household sharing," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 760-780.
    8. Alejandrina Salcedo & Todd Schoellman & Michèle Tertilt, 2012. "Families as roommates: Changes in U.S. household size from 1850 to 2000," Quantitative Economics, Econometric Society, vol. 3(1), pages 133-175, March.
    9. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    10. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    11. Liddle, Brantley, 2015. "What Are the Carbon Emissions Elasticities for Income and Population? Bridging STIRPAT and EKC via robust heterogeneous panel estimates," MPRA Paper 61304, University Library of Munich, Germany.
    12. Andrew Jorgenson & Daniel Auerbach & Brett Clark, 2014. "The (De-) carbonization of urbanization, 1960–2010," Climatic Change, Springer, vol. 127(3), pages 561-575, December.
    13. Gaigné, Carl & Riou, Stéphane & Thisse, Jacques-François, 2012. "Are compact cities environmentally friendly?," Journal of Urban Economics, Elsevier, vol. 72(2), pages 123-136.
    14. Liddle, Brantley, 2014. "Impact of population, age structure, and urbanization on carbon emissions/energy consumption: Evidence from macro-level, cross-country analyses," MPRA Paper 61306, University Library of Munich, Germany.
    15. Shammin, Md Rumi & Bullard, Clark W., 2009. "Impact of cap-and-trade policies for reducing greenhouse gas emissions on U.S. households," Ecological Economics, Elsevier, vol. 68(8-9), pages 2432-2438, June.
    16. Mariano Rojas, 2007. "A Subjective Well-being Equivalence Scale for Mexico: Estimation and Poverty and Income-distribution Implications," Oxford Development Studies, Taylor & Francis Journals, vol. 35(3), pages 273-293.
    17. Shammin, Md. R. & Herendeen, Robert A. & Hanson, Michelle J. & Wilson, Eric J.H., 2010. "A multivariate analysis of the energy intensity of sprawl versus compact living in the U.S. for 2003," Ecological Economics, Elsevier, vol. 69(12), pages 2363-2373, October.
    18. Carl Gaigné & Stéphane Riou & Jacques-François Thisse, 2012. "Are Compact Cities Environmentally (and Socially) Desirable ?," Cahiers de recherche CREATE 2012-4, CREATE.
    19. Underwood, Anthony & Zahran, Sammy, 2015. "The carbon implications of declining household scale economies," Ecological Economics, Elsevier, vol. 116(C), pages 182-190.
    20. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    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. repec:eee:enepol:v:123:y:2018:i:c:p:404-413 is not listed on IDEAS
    2. repec:gam:jeners:v:11:y:2018:i:5:p:1257-:d:146326 is not listed on IDEAS

    More about this item

    Keywords

    Emissions; Urban Density; Sharing; Household Size; Energy;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:dic:wpaper:2016-01. 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: (Jonathan Cogliano). General contact details of provider: http://edirc.repec.org/data/eddicus.html .

    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.