Household income and carbon footprint: evidence from Taiwan

Abstract Previous studies found that households’ energy use and consumption of goods and services contribute greatly to increasing carbon emissions. This study estimated household carbon footprints, including direct and indirect emissions. Using the 2019 Taiwan Survey of Family Income and Expenditure, we investigated the heterogeneous relationship between household income and carbon emissions. Income sources were divided into six categories: compensation of employees, entrepreneurial income, property income, imputed rent income, transfer income, and miscellaneous income. Our results indicate that the income–emission elasticity for household total emission, direct emission, and indirect emission are 0.62, 0.37, and 0.84, respectively. Household income is positively associated with household carbon footprint, especially among households with higher imputed rent income. The proportion of household indirect emissions rises as income increases. Household income exhibits a stronger relationship with indirect carbon emissions than with direct carbon emissions. These findings suggest an important avenue for reducing the carbon footprint of high-income households: promoting energy-saving measures and encouraging the use of low-carbon footprint goods and services. Examples include those produced with recycled materials or low-carbon energy sources.