Scandinavian Working Papers in Economics

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

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

Patrick A. Narbel () and Elisabeth T. Isaksen ()
Additional contact information
Patrick A. Narbel: Dept. of Business and Management Science, Norwegian School of Economics, Postal: NHH , Department of Business and Management Science, Helleveien 30, N-5045 Bergen, Norway
Elisabeth T. Isaksen: Centre for Ecological and Evolutionary Synthesis, Dept. of Biosciences, University of Oslo, Postal: University of Oslo, Department of Biosciences, Centre for Ecological and Evolutionary Synthesis, Box 1066 Blindern, N-0316 OSLO, Norway

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

JEL-codes: Q40; Q50

22 pages, April 14, 2014

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