Individual Consumption and Its Effects on Carbon Emissions: A Comparison of Developed and Developing Countries

Abstract

The objective of this study is to determine the nature of household consumption of goods and services and its implications in terms of differences in carbon emissions between developed and developing countries. In this study, data on per capita consumption expenditure (PCCE) for 71 countries (37 developed and 34 developing) and 12 consumption categories were used. The average PCCE by each consumption category over both developed and developing countries was estimated for the years 2004–2011 and compared with that of 1995. The twelve consumption categories were ranked (for developed and developing countries) according to CO2 emission intensities (kg/USD) as well as the percentage share of each category in total PCCE (in USD) in 1995 and for the period 2004–11. The two sets of ranks were matched to compare the implications of household consumption on carbon emissions. The results indicate that there are similarities as well as differences in terms of the burden of responsibility of causing CO2 emissions between consumption categories. While ‘housing’ and ‘transport’ occupy first and third places, respectively, for both groups, the second place is occupied by ‘food and non-alcoholic beverages’ in developed and ‘clothing and footwear’ in developing countries. Also, consumption categories ‘communication’ in developed and ‘education’ in developing countries are lowest emitting categories. The trends also revealed that changes in the consumption pattern were more significant in developing countries, both in terms of the rate of growth of PCCE and changes in the percentage share of different consumption categories in total PCCE.