Climate policy through changing consumption choices: Options and obstacles for reducing greenhouse gas emissions

Abstract

While national climate policy can address countries’ production or consumption, climate mitigation via changes in consumption has previously received relatively little attention in climate policy literature. In the absence of an effective international climate policy, the focus on consumption is gaining relevance since it has advantages regarding carbon leakage and competitiveness concerns. In addition, consumption oriented climate policy allows for low cost climate mitigation because of behavioral market failures. Therefore, a systematic evaluation of low greenhouse gas consumption options is needed. This article reviews the carbon footprint of products in the five main consumption categories (food, shelter, travel, goods and service) and compares their compatibility with the greenhouse gas intensity required in 2050 to meet the 2° climate target. The evaluation then identifies consumption options compatible with this climate target in all categories. The description of these consumption options allows for the recognition of barriers to their selection. In contrast to production oriented climate policy, besides costs, relevant barriers include consumer preferences, the skills required to find or adopt the product and high initial investments. We conclude that there is substantial climate mitigation potential from changing consumption choices which can be tapped through climate policy by addressing non-cost barriers.