The mathematical treatment for effect of income and urban-rural income gap on indirect carbon emissions from household c

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RESEARCH ARTICLE

The mathematical treatment for effect of income and urban-rural income gap on indirect carbon emissions from household consumption Xiaowei Ma 1,2,3,4 & Danni Chen 1,2 & Jingke Lan 1,2 & Chuandong Li 1,2 Received: 4 December 2019 / Accepted: 21 May 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020

Abstract Climate change and income inequality are global problems with a huge impact on the environment, society, and economic development. Many studies have shown a correlation among income, the income gap, and carbon emissions, but the influence mechanism remains unclear of income and the income gap on carbon emissions. Using the input-output method, we introduce residents’ consumption tendency to construct a mathematical model to discuss the mechanism of the influence of income and the income gap on indirect carbon emissions from household consumption (ICEH). Data at the national and provincial levels are used to conduct empirical research based on the model. Our model indicates four scenarios in which income and the income gap affect ICEH through residents’ consumption tendency. When richer urban residents have a greater consumption tendency, a decrease in the income gap would reduce carbon emissions. The empirical results show that a decrease in the income gap is correlated with an increase in ICEH in China from 2002 to 2012. Therefore, the win-win situation of “increased income and narrowed income gapreduced carbon emissions” is hard to achieve in China. Policymakers must urgently explore other ways to reduce carbon emissions. Keywords Income . Urban-rural income gap . Indirect carbon emissions from household consumption . Residents’ consumption tendency

Introduction Responsible Editor: Eyup Dogan * Xiaowei Ma [email protected]; [email protected] Danni Chen [email protected] Jingke Lan [email protected] Chuandong Li [email protected] 1

Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, China

2

School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China

3

Beijing Key Laboratory of Energy Economics and Environmental Management, Beijing 100081, China

4

Sustainable Development Research Institute for Economy and Society of Beijing, Beijing 100081, China

In recent years, global warming, caused by the increase in greenhouse gas, mainly carbon dioxide, has become increasingly significant, seriously threatening the ecological environment. Additionally, global income polarization is increasingly serious, and the income gap among different regions within countries is obvious, leading to an increased social security burden and economic disorder. In the twenty-first century, humankind has paid considerable attention to climate warming and income inequality, attracting extensive interest worldwide. Carbon emissions include supply-side emissions from the production of goods and services and consumption-side emissions caused by household life (Maraseni et al. 2016). Studies have proven that th