Decomposing Drivers of Rising Household Carbon Emission in the Philippines

Abstract

This study investigates the major factors affecting the increase in household carbon emission in the Philippines using the well known analytical tool-Kaya identity. The changes in Kaya factors of household emission were analyzed using the logarithmic mean Divisia index. Results show that a positive relationship between emission and income is evident when disaggregating household carbon emission across income quintiles. The increase in carbon emission at the poorest quintile is largely driven by the increase in income while at the richest quintile it is explained more by the increase in energy expenditure relative to income. Overall, the increase in household carbon emission across income quintiles is offset by the decrease in "carbon intensity" of household consumption. If policy makers are keen in stabilizing household carbon emission, they should device policies that aim to improve household energy efficiency.