An empirical analysis of the household consumption-induced carbon emissions in China

As China is becoming a domestic demand oriented economy, it is pertinent to address its household consumption-induced carbon emissions for ensuring environmental sustainability. Besides, managing the household consumption-induced carbon emissions is vital to the attainment of the nation's carbon neutrality agenda of 2060. Hence, this study examines the effects of household consumption on carbon emissions using the Chinese provincial data from 1995 to 2017. The third-generation unit root and cointegration tests are employed to account for structural breaks. Moreover, simultaneously accounting for cross-sectional dependency and slope heterogeneity concerns, the short- and long-run elasticities of carbon emissions are predicted using the pooled mean group, the common correlated effects mean group and the recently developed cross-sectional augmented autoregressive distributed lag estimators. The…