An empirical analysis of the household consumption-induced carbon emissions in China

Controlling carbon dioxide (CO ) emissions has been an important measure to mitigate global climate change, and the study of household consumption and related environmental impacts has become a hot topic in the field of sustainable development research in recent years. Taking 2000–2014 as the research period, this paper studies the indirect CO emissions of household consumption in China by using the MRIO model and uses SDA to analyze the driving factors of indirect CO emissions of household consumption in China. The results show that: (1) During the study period, the indirect CO emissions caused by household consumption in China showed an increasing trend, with the total household amount increasing by 1.9 times, and the per capita CO emissions increasing by 1.76 times. (2) The CO emissions from household consumption in China are concentrated mainly in Commercial and Public Services (CPS), Electricity, Gas, Steam and Air Conditioning Supply (EGSA), and Manufacture of Food and Tobacco (MFT), which accounted for 26.63%, 17.69% and 13.52%, respectively, of the total emissions in 2014. (3) China has been in the position of net outflow of indirect CO emissions from household consumption. (4) The growth of per capita household consumption is the main factor promoting the growth of indirect CO emissions from household consumption in China, and the reduction of carbon intensity in various countries is the main factor in restraining the indirect CO emissions caused by household consumption in China. This study shows that indirect CO emissions from household consumption in China are likely to rise, and the government should not only improve the level of household consumption continuously but also actively adjust the industrial structure and optimize the consumption structure to alleviate CO2 emissions effectively.

The carbon dioxide emission caused by household consumption has been attracting growing attention; however, the linkage mechanisms of carbon dioxide emission caused by household consumption among sectors have been rarely studied. This paper employs the hypothetical extraction method to analyze the linkage of sectoral carbon dioxide emission caused by household consumption in China. The results show that, first, the sectors PDEH, OTHERS, MFT and SPM have the most important influence on carbon dioxide emission produced by each sector. Specifically, the sectors PDEH and SPM play the main role in pushing carbon dioxide emission, while the sectors OTHERS and MFT have important effect on pulling carbon dioxide emission. Second, the sectors with high supply carbon dioxide emission are inconsistent with those having high demand carbon dioxide emission. Finally, the carbon dioxide emission when urban household consumption expenditure rises ten thousand Yuan appears higher than that by rural household consumption expenditure.

The present study investigates the effect of public‐private partnership investment in energy and technological innovation on consumption‐based carbon emissions for China from 1990Q1‐2017Q2. This study employs generalized least square (GLS) based unit root test, Maki cointegration test, fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS), canonical cointegration regression (CCR) and frequency domain causality test. The finding of this study shows that (a) the cointegrating relationship among public‐private partnership investment in energy, technological innovation, renewable energy consumption, exports, imports, and consumption‐based carbon emissions is proved; (b) exports, renewable energy consumption and technological innovation are helpful to lower consumption‐based carbon emissions; (c) both public‐private partnership investment in energy, GDP and imports leads to increased consumption‐based carbon emissions; (d) in the long term, public‐private partnership investment and technological innovation cause consumption‐based carbon emissions in China. This study recommends technological innovation for the cleaner production process and public‐private partnership investment in renewable energy.

This paper investigates the causal relationship between the Urban and Rural Resident Basic Medical Insurance (URRBMI) reform and household consumption in urban China using data from the Chinese Household Income Project survey and employing combination of the propensity score matching and difference‐in‐differences methods. The results yield three conclusions. First, the reform affected both the amount and share of household consumption. Specifically, the reform led to an increase in total household consumption, encompassing both medical and nonmedical expenditures. Among these, the proportion of medical consumption increased, while the proportion of nonmedical consumption reduced. Second, the impact of the URRBMI reform varied across consumption categories within nonmedical expenditure. Specifically, consumption for education and entertainment industries are positively impacted by the URRBMI reform in terms of both quantity and proportion. Third, low‐income households benefit more from the URRBMI reform compared to middle‐ and high‐income households. The main channels through which the URRBMI reform affects household consumption were the price effect and the crowding out effect on precautionary savings.

Environmental degradation has been recognized as a global issue due to high energy consumption and economic growth. This situation needs researchers to focus on, thereby, the current article examined the impact of renewable energy production (REP), energy import, renewable energy consumption (REC), gross domestic product (GDP), inflation, and foreign direct investment (FDI) on the carbon dioxide (CO2) emission in China. The study considered secondary data and extracted it from the World Bank database covering the period 1981 to 2018. The current article has examined the stationarity of the constructs using Augmented Dickey-Fuller tests and investigated the association among constructs using the quantile autoregressive distributed lag (QARDL) model. The data revealed that REP, energy import, and REC, had a significant and negative linkage with CO2 emission in China. In contrast, GDP, inflation, and FDI are linked with CO2 emission in a positive manner. The article also guided the policymakers regarding the policy development related to reducing carbon emissions using renewable energy production and consumption.

The indirect energy consumption and CO2 emission caused by household consumption in China: an analysis based on the input–output method

In this paper, we utilize input–output analysis and decomposition techniques to examine the direct and indirect urban and rural per-capita carbon emissions generated by household consumption in China from 1987 to 2007. The results show that indirect emissions are considerably larger than direct emissions due to households in urban and rural areas. Indirect urban emissions increase significantly because of growing expenditures, but indirect rural emissions do not register the same increase. Direct urban emissions decrease significantly because of changes in the energy mix, but direct rural emissions show only a slight decrease. The increase in the disparity of indirect urban–rural emissions and the decrease in the disparity in direct urban–rural emissions are evident. These findings imply that both energy-saving behavior in the production sector and residential lifestyle transition – particularly in the urban areas – are significant in mitigating carbon emissions in China.

Renewable energy consumption is considered as the main form of energy consumption in the future. The carbon emissions produced by renewable energy can be approximately ignored, and renewable energy is essential for regional sustainable development. In this study, we used the Durbin model with panel data to explore the spatial dependence between renewable energy consumption the and carbon emissions of China’s 30 provinces from 1997 to 2017. The results show that: (1) there is a negative spatial correlation between renewable energy consumption and carbon emissions, and “High-Low” areas are mainly concentrated in southern provinces in 1997–2011; (2) the center of gravity of renewable energy consumption moves southwest, which is consistent with the center of gravity of carbon emissions; (3) renewable energy consumption has a significant inhibitory effect on carbon emissions of a local region, but the spatial spillover effect is not significant. Specifically, a 1% increase in renewable energy consumption in a region will reduce carbon emissions by 0.05%. Finally, on the basis of this study, it was proposed to give full play to the advantages of renewable energy in the western region, and further accelerate the development of the renewable energy industry.

This paper calculated the inventory of CO2 emission in China based on input-output model, and then estimated CO2 emission induced by urban and rural household consumption based on statistic data of household living expenditure from 1995 to 2004 in China. The results show that from 1995 to 2004, CO2 emission per capita induced by household consumption has increased from 911kgCO2 to 1,564kgCO2. The ratio of consumption-induced CO2 emission to total CO2 emission has risen from 37% to 45% in the past decade. CO2 emission per capita induced by urban household consumption has increased from 1,583kgCO2 to 2,498kgCO2. CO2 emission per capita induced by rural household consumption has grown from 636kgCO2 to 894kgCO2. Change in lifestyle has driven significant increase in CO2 emission. It can be expected that households in low-income regions will increase consumption to improve their livings with income growth in future. Although it may induce much more CO2 emission, a reasonable level of CO2 emission is needed to satisfy human basic needs and to improve household livelihood. A noticeable fact is that CO2 emission per capita induced by household consumption in developed areas of China has reached at a quite high level. Adjustment in lifestyle towards low-carbon society is required urgently.

This study examines the interactions among economic growth, technological innovation, renewable energy consumption, and carbon emissions in Africa using advanced econometric methods. Panel data analysis reveals both symmetric and asymmetric impacts on carbon emissions, showing how economic and technological variables contribute to environmental outcomes. The augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators address cross-sectional dependence and heterogeneity, ensuring robust results. Findings indicate that positive economic growth increases emissions, while economic downturns significantly reduce emissions. The study underscores the need for strategic policies that leverage technological innovations and renewable energy to promote sustainable development in African economies, balancing economic growth with environmental protection.

Financial inclusion means that individuals and businesses can easily avail financial goods and services at an affordable cost. It is widely recognized that financial inclusion can help preserve the environment by increasing the consumption of renewable energy sources. Hence, our basic aim is to investigate whether financial inclusion has any effect on renewable energy consumption and environmental quality in China. To get the estimates of the variables, we have preferred the ARDL model. The estimates of the model confirm that a rise in the number of ATMs and total insurance has a positive impact on renewable energy consumption in China in the long run. Conversely, an increase in the number of ATMs and total insurance negatively affects CO2 emissions in China. In general, we can say that financial inclusion increases renewable energy consumption and reduces CO2 emissions in China. Therefore, by using financial inclusion, policymakers should try to divert the resources towards environmentally friendly consumption and production activities.

This study examines the relationship between interest rates and household consumption in China from 1993 to 2023 within a Keynesian Consumption Framework. Using time-series OLS regressions, the study distinguishes between short-term and long-term interest rates to capture liquidity and intertemporal effects, while controlling for GDP growth rate, inflation, and ageing demographics. Separate models for rural and urban households are examined to assess regional heterogeneity. The results reveal a negative overall relationship between interest rates and household consumption, consistent with the Keynesian transmission mechanism. However, only long-term interest rates exhibit a statistically significant effect for rural households, where limited credit access amplifies sensitivity to borrowing costs. In contrast, urban consumption appears largely unaffected by monetary changes, reflecting stronger financial stability and wealth buffers. Among the control variables, the ageing population ratio exerts a robust and positive influence, absorbing the significance for interest rate variables. This suggests that demographic structure moderates the impact of interest rate fluctuations. The findings highlight that monetary policy alone is insufficient to stimulate household consumption in China. Strengthening financial inclusion, social safety systems, and demographic coordination is essential to enhance monetary transmission and support China further towards a more consumption-driven and regionally balanced economy.

With a rising trend in global CO2 emissions due to industrialization, the role of renewable energy, technological innovation and green investment in curbing is critical. The main contribution of the current paper is to examine the impact of green investment, renewable energy consumption and technological innovation on CO2 emissions of 30 sample provinces of China from 1995–2019. The results of CS‐ARDL approach shows that renewable energy, technological innovation and green investment is important in abating CO2 emissions in China. Also, EKC for provincial data of China is confirmed. However, financial development escalates carbon emissions in China. It is also found that any policy change in green investment, financial development, renewable energy, technological innovation, and natural resource rent has strong implications for environmental quality of China. Therefore, shifting the economic structure to renewable energy is an important strategy to reduce carbon emissions. It is suggested that an adequate level of green investment projects should be initiated. Appropriate regulatory and economic drivers can boost investment businesses with more resources provided for the promotion of technical assistance.

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