Rising carbon footprint inequality in the Philippines

Abstract

The literature is abundant with studies analyzing inequality in carbon emissions at the macroeconomic level, but very limited at the household level. The issue of household carbon footprint inequality is relevant in mitigating climate change through curbing household emissions. This study investigates household carbon footprint inequality in the Philippines and decomposes it into consumption sources applying the standard method used in analyzing income inequality. Results show that the richest 20% of the population has an aggregate share of more than 50% in the total household emissions. Between 2000 and 2006, the Gini coefficient of carbon footprint increases from 0.455 to 0.475. This implies that there is a high and worsening carbon footprint disparity among Filipino households. This disparity in emissions is more pronounced among rich and poor households relative to the middle-income households depicting a non-monotonous kind of relationship between household income and carbon emissions. This suggests that variations in lifestyle and consumption preferences determine overall household emissions inequality. In addition, the decomposition analysis suggests that inequality in carbon footprint is mainly driven by energy-intensive consumption such as fuel, light and transportation. At any affluence level, promotion of less carbon-intensive or energy-efficient consumption allows for the reduction of not just the emissions level, but also the disparity in household carbon footprint.