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Affluence and emission trade-offs: evidence from Indonesian household carbon footprint

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  • M. Iqbal Irfany

    (Georg-August-University Göttingen)

Abstract

The objectives of this study are to analyze the household carbon footprint pattern in Indonesia and to analyze the determinants of the growing carbon footprint in this emerging economy. To measure the household emissions, we combine national input-output, emission database to generate sectoral CO2 emission intensities and matched these intensities with two waves of national expenditure surveys from 2005 and 2009. We then use this household CO2 emission for investigating the drivers of the rise in emissions from the micro perspective. Comparing CO2 intensities, the results show that transportation, fuel-light, are the two most intensive emitting sectors in Indonesia. We also found a significant difference of household carbon emission comparing between per capita expenditure level, region, and education. Regression analysis suggests that expenditure is the main determinant of household emission. Although other household characteristics determine the variation of emission, it is shown that varying affluent level differs significantly in term of carbon footprint. The decomposition analysis confirms that changes in emission are dominantly contributed by the rise of expenditure comparing between household level and over the two periods. Expenditure elasticities analysis suggest that the rise of household emission is mainly caused by general volume increase in overall household consumption, and not by shifting the share of expenditure amongst consumption basket.

Suggested Citation

  • M. Iqbal Irfany, 2014. "Affluence and emission trade-offs: evidence from Indonesian household carbon footprint," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 161, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:161
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    File URL: http://www2.vwl.wiso.uni-goettingen.de/courant-papers/CRC-PEG_DP_161.pdf
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    Cited by:

    1. Mira Kelly-Fair & Sucharita Gopal & Magaly Koch & Hermin Pancasakti Kusumaningrum & Muhammad Helmi & Dinda Khairunnisa & Les Kaufman, 2022. "Analysis of Land Use and Land Cover Changes through the Lens of SDGs in Semarang, Indonesia," Sustainability, MDPI, vol. 14(13), pages 1-23, June.
    2. Wang, Keying & Cui, Yongyan & Zhang, Hongwu & Shi, Xunpeng & Xue, Jinjun & Yuan, Zhao, 2022. "Household carbon footprints inequality in China: Drivers, components and dynamics," Energy Economics, Elsevier, vol. 115(C).
    3. Shi, Xunpeng & Wang, Keying & Cheong, Tsun Se & Zhang, Hongwu, 2020. "Prioritizing driving factors of household carbon emissions: An application of the LASSO model with survey data," Energy Economics, Elsevier, vol. 92(C).
    4. Pottier, Antonin, 2022. "Expenditure elasticity and income elasticity of GHG emissions: A survey of literature on household carbon footprint," Ecological Economics, Elsevier, vol. 192(C).
    5. Moises Neil V. Seriño & Stephan Klasen, 2015. "Estimation and Determinants of the Philippines' Household Carbon Footprint," The Developing Economies, Institute of Developing Economies, vol. 53(1), pages 44-62, March.
    6. Moises Neil V Seriño, 2022. "Energy security through diversification of non-hydro renewable energy sources in developing countries," Energy & Environment, , vol. 33(3), pages 546-561, May.
    7. 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).
    8. Never, Babette & Albert, Jose Ramon & Fuhrmann, Hanna & Gsell, Sebastian & Jaramillo, Miguel & Kuhn, Sascha & Senadza, Bernardin, 2020. "Carbon consumption patterns of emerging middle classes," IDOS Discussion Papers 13/2020, German Institute of Development and Sustainability (IDOS).

    More about this item

    Keywords

    carbon footprint; household; Indonesia;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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