HOUSEHOLDS’ BEHAVIOUR AND ENVIRONMENTAL EMISSIONS IN A REGIONAL ECONOMY

Abstract

Households have significant demand-side potential to drive reductions in atmospheric emissions, including both direct and indirect emissions. Our analysis focuses on the behaviour of a regional economy (Aragon, Spain) and its impact on greenhouse gases (GHG) and sulphur dioxide (SO2). Using a CGE model, we simulate scenarios and evaluate the environmental impact of adopting changes considered in the Aragonese Climate Change and Clean Energy Strategy. Specifically, we analyse the impact of electricity savings and the promotion of public transport (bus or train) versus private car use. The results indicate that 1 MWh of saving in electricity consumption by households could reduce emissions of GHG by 0.112 kt of equivalent CO2 and 8.209 kg of SO2 with a shift in demand preferences and 0.022 kt of equivalent CO2 and 7.612 kg of SO2 with an efficiency improvement. Moreover, household changes in demand preferences regarding private/public transport, also contribute to reduce emissions.