Expenditure as proxy for UK household emissions? Comparing three estimation methods

Abstract

Due to a lack of emissions data at the household level, studies examining the relationship between UK household CO2 emissions and household characteristics currently rely on expenditure surveys to estimate emissions. There are several possible methods available for doing so but so far there is no discussion in the literature about the advantages and disadvantages related to these options. Such a comparison is relevant because studies in this area often draw policy-relevant conclusions.

To address this gap, this paper compares three different methods of estimation to discuss two questions: first, is it at all necessary to convert household expenditure into emissions, given that household expenditure and emissions are strongly correlated, and does research that takes this approach add anything to the insights that already exist in the extensive literature on the determinants of household expenditure? Second, if we assume that it is necessary to convert household expenditure into emissions, are more detailed (and time-consuming) methods of doing so superior to less detailed approaches? The analysis is based on expenditure data from the UK Living Costs and Food Survey 2008-9 and its predecessor the Expenditure and Food Survey 2006-7.

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