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Pollution Intensity of Consumption : Exploring the Environmental Engel Curve Based on Micro-Data from 109 Countries

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  • Ebadi, Ebad
  • Rentschler, Jun

Abstract

Environmental Engel curves characterize the relationship between the embodied environmental impact of household consumption choices and their respective income levels. Using detailed microdata from 109 countries across all income levels, this paper studies household expenditure shares on 11 fuel types that differ in their air pollution intensity. The findings show that wealthier households tend to shift away from dirty fuels and toward cleaner ones, although this transition is not guaranteed. In low-income countries, limited infrastructure and poor access to clean fuels slow this process, demonstrating that income alone cannot drive energy transitions. By documenting systematic variation in environmental Engel curves across income groups and national contexts, the paper emphasizes the joint role of income growth and infrastructure development. The analysis also reveals a dual burden of pollution in which richer households are the primary contributors to outdoor air pollution, while poorer households remain reliant on polluting fuels that increase their exposure to indoor air pollution.

Suggested Citation

  • Ebadi, Ebad & Rentschler, Jun, 2025. "Pollution Intensity of Consumption : Exploring the Environmental Engel Curve Based on Micro-Data from 109 Countries," Policy Research Working Paper Series 11266, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11266
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    References listed on IDEAS

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    1. Arik Levinson & James O’Brien, 2019. "Environmental Engel Curves: Indirect Emissions of Common Air Pollutants," The Review of Economics and Statistics, MIT Press, vol. 101(1), pages 121-133, March.
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