Do the rich pollute more? Mexican household consumption by income level and CO₂ emissions

Abstract

Purpose The purpose of this paper is to quantitatively examine if varying household consumption activities at different income levels drove CO 2 emissions to different degrees in Mexico from 1990 to 2014. Design/methodology/approach The paper applied a simple expenditure-CO 2 emissions elasticity model – a top-down approach – using data from consumption-based CO 2 emission inventories and the “Household Income and Expenditure Survey” and assuming a range of 0.7-1.0 elasticity values. Findings The paper results show a large carbon inequality among income groups in Mexico throughout the period. The household consumption patterns at the highest income levels are related to significantly more total CO 2 emissions (direct + indirect) than the household consumption patterns at the lowest income levels, in absolute terms, per household and per capita. In 2014, for example, the poorest household decile emitted 1.6 tCO 2 per capita on average, while the wealthiest decile reached 8.6 tCO 2 per capita. Practical/implications The results suggest that it is necessary to rethink the effect of consumption patterns on climate change and the allocation of mitigation responsibilities, thus opening up complementary options for designing mitigation strategies and policies. Originality/value The paper represents an alternative approach for studying CO 2 emissions responsibility in Mexico from the demand side, which has been practically absent in previous studies. The paper thereby opens a way for studying and discussing climate change in terms of consumption and equity in the country.