Estimation and decomposition analysis of carbon emissions from the entire production cycle for Chinese household consumption

Abstract

To guide households on implementing low-carbon consumption patterns, it is necessary to comprehensively measure carbon emissions of household consumption. This study expands the input-output relationship into the production-consumption relationship. It uses optimized data of the relationship between household consumption and production industry to calculate the entire production-side carbon emissions, including from capital formation, of Chinese household consumption, and uses LMDI model to analyze the factors affecting the growth of carbon emissions from Chinese household consumption. The results show that the carbon emissions of Chinese household consumption grew steadily from 2005 to 2015 almost 50% of carbon emissions were accounted for by high growth rates in residence consumption. Carbon emissions and growth rate of urban households’ consumption are significantly higher than the same figures for rural households. The carbon emissions intensity of all types of household consumption except residence and education has shown a downward trend. Household consumption structure and income level are the two main factors that promote the growth of household carbon emissions. Urbanization level and population size are secondary factors while household consumption carbon intensity is an important factor for curbing the growth of household consumption emissions. The study also proposes policy recommendations on how to improve the consumption structure of households, reduce the carbon intensity of household consumption, and curb the growth of carbon emissions from urban households.