The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal

This paper establishes an empirical relationship between CO<sub>2</sub> emissions from burning fossil fuels and household consumption of nondurable goods and services. Using a typical life cycle-permanent income hypothesis framework, we reject the hypothesis that inclusion of CO<sub&g...

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Autores principales:	José M. Belbute, Alfredo M. Pereira
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	household consumption CO<sub>2</sub> emissions Portugal Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
Acceso en línea:	https://doaj.org/article/203c4b1a16474cfc852545cec7e3e038
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spelling	oai:doaj.org-article:203c4b1a16474cfc852545cec7e3e0382021-11-11T19:46:12ZThe Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal10.3390/su1321121532071-1050https://doaj.org/article/203c4b1a16474cfc852545cec7e3e0382021-11-01T00:00:00Zhttps://www.mdpi.com/2071-1050/13/21/12153https://doaj.org/toc/2071-1050This paper establishes an empirical relationship between CO<sub>2</sub> emissions from burning fossil fuels and household consumption of nondurable goods and services. Using a typical life cycle-permanent income hypothesis framework, we reject the hypothesis that inclusion of CO<sub>2</sub> emissions in the consumption function is not supported by the data. Furthermore, our results suggest the existence of a distaste effect or negative state dependence effect. This result has important policy implications as it suggests that decarbonizing the economy would ultimately stimulate household consumption. Our results also have implications for both the cyclical behavior and the smoothing process of consumption, which depend on the branch of the environmental Kuznets curve that the country is on as well as on the prevalence of intertemporal dependent preferences.José M. BelbuteAlfredo M. PereiraMDPI AGarticlehousehold consumptionCO<sub>2</sub> emissionsPortugalEnvironmental effects of industries and plantsTD194-195Renewable energy sourcesTJ807-830Environmental sciencesGE1-350ENSustainability, Vol 13, Iss 12153, p 12153 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	household consumption CO<sub>2</sub> emissions Portugal Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350
spellingShingle	household consumption CO<sub>2</sub> emissions Portugal Environmental effects of industries and plants TD194-195 Renewable energy sources TJ807-830 Environmental sciences GE1-350 José M. Belbute Alfredo M. Pereira The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
description	This paper establishes an empirical relationship between CO<sub>2</sub> emissions from burning fossil fuels and household consumption of nondurable goods and services. Using a typical life cycle-permanent income hypothesis framework, we reject the hypothesis that inclusion of CO<sub>2</sub> emissions in the consumption function is not supported by the data. Furthermore, our results suggest the existence of a distaste effect or negative state dependence effect. This result has important policy implications as it suggests that decarbonizing the economy would ultimately stimulate household consumption. Our results also have implications for both the cyclical behavior and the smoothing process of consumption, which depend on the branch of the environmental Kuznets curve that the country is on as well as on the prevalence of intertemporal dependent preferences.
format	article
author	José M. Belbute Alfredo M. Pereira
author_facet	José M. Belbute Alfredo M. Pereira
author_sort	José M. Belbute
title	The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
title_short	The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
title_full	The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
title_fullStr	The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
title_full_unstemmed	The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal
title_sort	relationship between consumption and co<sub>2</sub> emissions: evidence for portugal
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/203c4b1a16474cfc852545cec7e3e038
work_keys_str_mv	AT josembelbute therelationshipbetweenconsumptionandcosub2subemissionsevidenceforportugal AT alfredompereira therelationshipbetweenconsumptionandcosub2subemissionsevidenceforportugal AT josembelbute relationshipbetweenconsumptionandcosub2subemissionsevidenceforportugal AT alfredompereira relationshipbetweenconsumptionandcosub2subemissionsevidenceforportugal
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The Relationship between Consumption and CO<sub>2</sub> Emissions: Evidence for Portugal

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