Do the rich pollute more? Mexican household consumption by income level and CO2 emissions

Abstract

PurposeThe purpose of this paper is to quantitatively examine if varying household consumption activities at different income levels drove CO2 emissions to different degrees in Mexico from 1990 to 2014.Design/methodology/approachThe paper applied a simple expenditure-CO2 emissions elasticity model – a top-down approach – using data from consumption-based CO2 emission inventories and the “Household Income and Expenditure Survey” and assuming a range of 0.7-1.0 elasticity values.FindingsThe paper results show a large carbon inequality among income groups in Mexico throughout the period. The household consumption patterns at the highest income levels are related to significantly more total CO2 emissions (direct + indirect) than the household consumption patterns at the lowest income levels, in absolute terms, per household and per capita. In 2014, for example, the poorest household decile emitted 1.6 tCO2 per capita on average, while the wealthiest decile reached 8.6 tCO2 per capita.Practical/implicationsThe results suggest that it is necessary to rethink the effect of consumption patterns on climate change and the allocation of mitigation responsibilities, thus opening up complementary options for designing mitigation strategies and policies.Originality/valueThe paper represents an alternative approach for studying CO2 emissions responsibility in Mexico from the demand side, which has been practically absent in previous studies. The paper thereby opens a way for studying and discussing climate change in terms of consumption and equity in the country.