Carbon Footprint Differentiation in the Japanese Residential Sector Due To Income‐Driven Divergences in Consumption and Time Allocation

Abstract Households are responsible for a large fraction of the direct and indirect emissions of greenhouse gases (GHG) at the national level. However, emission patterns are not homogeneous within the residential sector, with several factors affecting them. This study explores how income‐related divergences in consumption and time allocation affect the carbon footprint of the Japanese residential sector. To achieve this, we combine data on emission intensities from national input‐output tables with household‐level consumption and time allocation data from two large‐scale nationally representative surveys. Overall, we find that indirect emissions account for approximately 78% of the overall carbon footprint of the residential sector across the studied income groups. The overall carbon footprint and the emissions of several individual consumption categories follow an N‐shaped curve, with some of the lower‐income groups having disproportionately higher emissions compared to middle‐ and higher‐income groups. Conversely, emissions for other individual consumption categories increase almost linearly with income. This points to the fact that different factors can affect emissions across income groups. Specifically, the N‐shaped curves are driven by the propensity of lower‐income households to spend more time at home and rely on inefficient technologies, while the linear trend is driven by the propensity of higher‐income households to consume more. A detailed understanding of how these factors affect emissions patterns can provide useful insights for designing and implementing effective policies to achieve decarbonization the residential sector.