Advertisement

Natural Hazards

, Volume 84, Supplement 1, pp 353–379 | Cite as

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

  • Qian Wang
  • Qiao-Mei Liang
  • Bing Wang
  • Fang-Xun Zhong
Original Paper

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.

Keywords

CO2 emissions Household expenditure Consumption patterns Income group Social Accounting Matrix 

Notes

Acknowledgments

The authors gratefully acknowledge financial support from the National Natural Science Foundation of China under Grant Nos. 71422011, 71461137006, and 71001007, the National Science and Technology Support Program under the Grant No. 2012BAC20B01, and the Program for New Century Excellent Talents in University under Grant No. NCET-12-0039. We also would like to thank the anonymous referees for their helpful suggestions and corrections on the earlier draft of our paper according to which we improved the content. It is grateful for the data and suggestions provided by the members from CEEP.

References

  1. Abu-Madi M, Abu Rayyan M (2013) Estimation of main greenhouse gases emission from household energy consumption in the West Bank, Palestine. Environ Pollut 179:250–257CrossRefGoogle Scholar
  2. Allcott H (2011) Social norms and energy conservation. J Public Econ 95(9–10):1082–1095CrossRefGoogle Scholar
  3. Baiocchi G, Minx J, Hubacek K (2010) The impact of social factors and consumer behavior on carbon dioxide emissions in the United Kingdom. J Ind Ecol 14:50–72CrossRefGoogle Scholar
  4. Brannlund R, Ghalwash T, Nordstrom J (2007) Increased energy efficiency and the rebound effect: effects on consumption and emissions. Energy Econ 29:1–17CrossRefGoogle Scholar
  5. Cellura M, Longo S, Mistretta M (2012) Application of the structural decomposition analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption. Renew Sustain Energy Rev 16(2):1135–1145CrossRefGoogle Scholar
  6. Chitnis M, Hunt LC (2011) Modelling UK household expenditure: economic versus noneconomic drivers. Appl Econom Lett 18(8):753–767CrossRefGoogle Scholar
  7. Chitnis M, Hunt LC (2012) What drives the change in UK household energy expenditure and associated CO2 emissions? Implication and forecast to 2020. Appl Energy 94:202–214CrossRefGoogle Scholar
  8. Chitnis M, Druckman A, Hunt LC, Jackson T, Milne S (2012) Forecasting scenarios for UK household expenditure and associated GHG emissions: outlook to 2030. Ecol Econ 84:129–141CrossRefGoogle Scholar
  9. CSFB (China Society for Finance & Banking) (2008) Almanac of China’s finance and banking 2008. Almanac of China’s Finance and Banking Editorial Board, BeijingGoogle Scholar
  10. Das A, Paul SK (2014) CO2 emissions from household consumption in India between 1993–1994 and 2006–2007: a decomposition analysis. Energy Econ 41:90–105CrossRefGoogle Scholar
  11. Department of Urban Social Economic Investigation of NBS (2008) China urban life and price yearbook 2008. China Statistics Press, BeijingGoogle Scholar
  12. DNANBS (2005) Compilation method of input–output table of China 2002, 2007. China Statistics Press, BeijingGoogle Scholar
  13. DNANBS (2009) Compilation method of input–output table of China 2002, 2007. China Statistics Press, BeijingGoogle Scholar
  14. DNANBS (Department of National Account of National Bureau of Statistics PR China) (2009) Input–output table of China 2007. China Statistics Press, BeijingGoogle Scholar
  15. Druckman A, Jackson T (2010) The bare necessities: How much household carbon do we really need? Ecol Econ 69:1794–1804CrossRefGoogle Scholar
  16. Duarte R, Mainar A, Sanchez-Choliz J (2010) The impact of household consumption patterns on emissions in Spain. Energy Econ 32:176–185CrossRefGoogle Scholar
  17. Duarte R, Mainar A, Sanchez-Choliz J (2012) Social groups and CO2 emissions in Spanish households. Energy Policy 44:441–450CrossRefGoogle Scholar
  18. Duchin F, Hubacek K (2003) Linking social expenditures to household lifestyles. Futures 35:61–74CrossRefGoogle Scholar
  19. ECCPY (Editor Committee of China Power Yearbook) (2008) China power yearbook 2008. China Electric Power Press, BeijingGoogle Scholar
  20. Fan JL, Liao H, Liang QM, Tatano H, Liu CF, Wei YM (2013) Residential carbon emission evolutions in urban–rural divided China: an end-use and behavior analysis. Appl Energy 101:323–332CrossRefGoogle Scholar
  21. Feng ZH, Zou LL, Wei YM (2011) The impact of household consumption on energy use and CO2 emissions in China. Energy 36:656–670CrossRefGoogle Scholar
  22. Fu D (2008) Finance year book of China 2008. China Finance Magazine, BeijingGoogle Scholar
  23. GACC (General Administration of Customs of the PR China) (2009) China customs statistics yearbook 2008. China Custom Magazine, BeijingGoogle Scholar
  24. Gough I, Abdallah S, Johnson V, Ryan-Collins J, Smith C (2011) The distribution of total greenhouse gas emissions by households in the UK, and some implications for social policy. Centre for Analysis of Social Exclusion. London School of Economics, CASE Paper 152, LondonGoogle Scholar
  25. IPCC (Intergovernmental Panel on Climate Change) (2006) IPCC guidelines for national greenhouse gas inventories. http://www.ipcc-nggip.iges.or.jp/public/2006gl/index.html. Accessed on 18 Feb 2015
  26. Kerkhof AC, Benders RMJ, Moll HC (2009) Determinants of variation in household CO2 emissions between and within countries. Energy Policy 37(4):1509–1517CrossRefGoogle Scholar
  27. Kim JH (2002) Changes in consumption patterns and environmental degradation in Korea. Struct Change Econ Dyn 13(1):1–48CrossRefGoogle Scholar
  28. Lee S, Lee B (2014) The influence of urban form on GHG emissions in the U.S. household sector. Energy Policy 68:534–549CrossRefGoogle Scholar
  29. Lenzen M, Wier M, Cohen C, Hayami H, Pachauri S, Schaeffer R (2006) A comparative multivariate analysis of household energy requirements in Australia, Brazil, Denmark, India and Japan. Energy 31:181–207CrossRefGoogle Scholar
  30. Liang QM, Wei YM (2012) Distributional impacts of taxing carbon in China: results from the CEEPA model. Appl Energy 92:545–551CrossRefGoogle Scholar
  31. Liang QM, Wang Q, Wei YM (2013) Assessing the distributional impacts of carbon tax among households across different income groups: the case of China. Energy Environ 24(7):1323–1346Google Scholar
  32. Liu HT, Guo JE, Qian D, Xi YM (2009) Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input–output analysis. Energy Policy 37(8):3194–3204CrossRefGoogle Scholar
  33. Liu LC, Wu G, Wang JN, Wei YM (2011) China’s carbon emissions from urban and rural households during 1992–2007. J Clean Prod 19:1754–1762CrossRefGoogle Scholar
  34. Liu Z, Guan D, Crawford-Brown D, Zhang Q, He K, Liu J (2013) A low-carbon road map for China. Nature 500(7461):143–145CrossRefGoogle Scholar
  35. Malla S (2013) Household energy consumption patterns and its environmental implications: assessment of energy access and poverty in Nepal. Energy Policy 61:990–1002CrossRefGoogle Scholar
  36. Nässén J (2014) Determinants of greenhouse gas emissions from Swedish private consumption: time-series and cross-sectional analyses. Energy 66:98–106CrossRefGoogle Scholar
  37. NBS (2010a) China statistical yearbook 2010. China Statistics Press, BeijingGoogle Scholar
  38. NBS (2010b) China energy statistical yearbook 2009. China Statistics Press, BeijingGoogle Scholar
  39. NBS (2014) National Statistical Bulletin on Economic and Social Development in China 2013. http://www.stats.gov.cn/tjsj/zxfb/201402/t20140224_514970.html. Accessed 13 May 2015
  40. NBS (2015) National Statistical Bulletin on Economic and Social Development in China 2014. http://www.stats.gov.cn/tjsj/zxfb/201502/t20150226_685799.html. Accessed 13 May 2015
  41. NBS (National Bureau of Statistics PR China) (2008) China statistical yearbook 2008. China Statistics Press, BeijingGoogle Scholar
  42. Peters GP (2008) From production-based to consumption-based national emissions inventories. Ecol Econ 65(1):13–23CrossRefGoogle Scholar
  43. Rural Social Economic Survey Team of NBS (2008) China Yearbook of Rural Household Survey 2008. China Statistics Press, BeijingGoogle Scholar
  44. SAT (State Administration of Taxation) (2013) Query on export rebate rates. http://hd.chinatax.gov.cn/guoshui/action/InitChukou.do. Accessed 3 Mar 2015
  45. Shirley R, Jones C, Kammen D (2012) A household carbon footprint calculator for islands: case study of the United States Virgin Islands. Ecol Econ 80:8–14CrossRefGoogle Scholar
  46. Shuai CM, Ding LP, Zhang YK et al (2014) How consumers are willing to pay for low-carbon products? Results from a carbon-labeling scenario experiment in China. J Clean Prod 83:366–373CrossRefGoogle Scholar
  47. Starkey R (2008) Allocating emissions rights: Are equal shares, fair shares? Tyndall Centre for Climate Change Research. Working Paper 118Google Scholar
  48. Starkey R (2012) Personal carbon trading: a critical survey: part 1: equity. Ecol Econ 73:7–18CrossRefGoogle Scholar
  49. State Council of China (2011) Notice of the state council on issuing the work plan for greenhouse gas emission control during the 12th five-year plan period. http://www.gov.cn/zwgk/2012-01/13/content_2043645.htm. Accessed on 21 Jan 2015
  50. Su B, Ang BW (2011) Multi-region input–output analysis of CO2 emissions embodied in trade: the feedback effects. Ecol Econ 71:42–53CrossRefGoogle Scholar
  51. Su B, Ang BW (2013) Input–output analysis of CO2 emissions embodied in trade: competitive versus non-competitive imports. Energy Policy 56(5):83–87CrossRefGoogle Scholar
  52. Upham P, Dendler L, Bleda M (2011) Carbon labelling of grocery products: public perceptions and potential emissions reductions. J Clean Prod 19(4):348–355CrossRefGoogle Scholar
  53. Vanclay JK, Shortiss J, Aulsebrook S et al (2011) Customer response to carbon labelling of groceries. J Consumer Policy 34(1):153–160CrossRefGoogle Scholar
  54. Wang Q, Liang QM (2014) Will a carbon tax hinder China’s efforts to improve its primary income distribution status? Mitig Adapt Strateg Glob Change. doi: 10.1007/s11027-014-9553-8 Google Scholar
  55. Wei YM, Liu LC, Fan Y, Wu G (2007) The impact of lifestyle on energy use and CO2 emission: an empirical analysis of China’s residents. Energy Policy 35:247–257CrossRefGoogle Scholar
  56. Wier M, Lenzen M, Munksgaard J, Smed S (2001) Effects of household consumption patterns on CO2 requirements. Econ Syst Res 13(3):259–274CrossRefGoogle Scholar
  57. Zhang M, Song Y (2015) Exploring influence factors governing the changes in China’s final energy consumption under a new framework. Nat Hazards 78:653–668CrossRefGoogle Scholar
  58. Zhao XL, Li N, Ma CB (2012) Residential energy consumption in urban China: a decomposition analysis. Energy Policy 41:644–653CrossRefGoogle Scholar
  59. Zhu Q, Peng XZ, Wu KY (2012) Calculation and decomposition of indirect carbon emissions from residential consumption in China based on the input–output model. Energy Policy 48:618–626CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Dordrecht 2015

Authors and Affiliations

  • Qian Wang
    • 1
    • 2
    • 3
  • Qiao-Mei Liang
    • 1
    • 2
    • 3
  • Bing Wang
    • 1
    • 2
    • 3
  • Fang-Xun Zhong
    • 4
  1. 1.Center for Energy and Environmental Policy ResearchBeijing Institute of TechnologyBeijingChina
  2. 2.School of Management and EconomicsBeijing Institute of Technology (BIT)BeijingChina
  3. 3.Collaborative Innovation Center of Electric Vehicles in BeijingBeijingChina
  4. 4.Department of Mechanical and Automation EngineeringThe Chinese University of Hong KongShatinChina

Personalised recommendations