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Department of Business and Management Science, Norwegian School of Economics (NHH) Discussion Papers, Department of Business and Management Science, Norwegian School of Economics (NHH)

No 2014/16:
A carbon footprint proportional to expenditure - a case for Norway?

Patrick A. Narbel () and Elisabeth T. Isaksen ()

Abstract: Assuming that emissions originate from the consumption of goods and services, we study the relationship between consumption-based per capita carbon footprint and per capita expenditure for Norway, using 2007 data. A two-region input-output model reveals that the consumption-based per capita carbon footprint is directly proportional to expenditure with an estimated elasticity close to unity. We show that this result is at least partly driven by a near zero-emission power sector, which leads to comparatively low emission intensities for domestically-produced goods and services.

Keywords: Carbon footprint; consumption; trade; (follow links to similar papers)

JEL-Codes: Q40; Q50; (follow links to similar papers)

22 pages, April 14, 2014

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