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http://hdl.handle.net/10174/34615
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Title: | The Relationship between Consumption and CO2 Emissions: Evidence for Portugal |
Authors: | Belbute, José Pereira, Alfredo |
Keywords: | household consumption CO2 emissions Portugal |
Issue Date: | 3-Nov-2021 |
Publisher: | MDPI |
Abstract: | This paper establishes an empirical relationship between CO2 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 CO2
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 |
URI: | http://hdl.handle.net/10174/34615 |
Type: | article |
Appears in Collections: | CEFAGE - Publicações - Artigos em Revistas Internacionais Com Arbitragem Científica
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