Consumption patterns by income groups and carbon-dioxide implications for India: 1990-2010.

Abstract

This paper highlights consumption pattern differences across income classes in India, namely the top 10%, middle 40% and bottom 50% of the population in rural and urban areas. The analysis is based on an input–output (I–O) model that uses consumption expenditure distribution data from various sources. It examines direct and indirect demand on resources and carbon–dioxide emissions due to consumption of each of these income classes. Out of a total of 167 mtC of carbon emissions in 1989–90, 62% was due to private consumption, 12% from direct consumption by households and remaining 50% due to indirect consumption of intermediates like power, steel and cement, while the rest was attributed to investment, government consumption and exports. The analysis reveals that the consumption of the rich is oriented more towards energy using sectors like electricity and transport, and uses relatively more resources in the form of minerals and metal products. The net effect is that the rich have a more carbon intensive lifestyle. The per capita direct and indirect emission level of the urban rich is about 15 times that of the rural poor and yet about the same as the world average. In a scenario where private consumption expenditure is expected to reach twice the 1990 level by 2010, carbon–dioxide emissions are projected to rise to 502 mtC. The low purchasing power of the poor results in their dependence on nature and the environment. This points to the conclusion that poverty is unsustainable.