The Rising Carbon Footprint of Philippine Households: An Estimation Using Consumption Expenditure and Input-Output Analysis

Abstract

This study aimed to estimate the carbon footprint of Philippine households from consuming various goods and services. Data from the Philippine Input-Output Table and Global Trade Analysis Project’s carbon emission coefficients were used to extract the carbon intensities of different economic sectors. The embodied carbon emission from different consumption items was estimated by tracing the associated emission down to its intermediate inputs used in the production. The total household carbon footprint was derived by summing up the carbon emission from each consumption category. Results showed that the highest carbon emitting goods consumed by households are related to expenditure on fuel, light and transportation while nondurable and recreation goods were the least carbon intensive. Different socio-economic characteristics of the households matter in explaining total household carbon footprint. By using non-parametric estimation, results showed a strong positive relationship between household carbon footprint and income but the effect varies across the distribution. This implies that further increases in carbon footprint are to be expected as households get richer. Policy makers should devise policies promoting green consumption or low-carbon lifestyle; else it is likely that households will be leading a carbon intensive lifestyle as they become more affluent.