Our results show that both of these factors play a role \@ref(fig:figure2). Lower-income households, on average, spend larger shares of their expenditure in the shelter sector. The bottom and top deciles spend an average of `r exp_share_shelter_bottom_decile`% and `r exp_share_shelter_top_decile`% of their household expenditure on shelter, respectively (our aggregated 'shelter' sector does not include rental payments. We have included the EXIOBASE production sector 'real estate services', which includes rental payments, in our aggregated 'services' sector, not the aggregated 'shelter' sector - see SI Table 4). Overall, with increasing expenditure decile, the shares of transport and services expenditures increase and the shares of shelter, food and manufactured goods decrease. At the same time, shelter is by far the most carbon intensive sector with the highest variance between expenditure deciles. In our sample, the intensity of all sectors decreases with expenditure level but the shelter sector stands out with a carbon intensity of consumption more than 3 times higher in the bottom decile (`r int_co2eq_shelter_bottom_decile` kgCO2eq/€) than in the top decile (`r int_co2eq_shelter_top_decile` kgCO2eq/€). Households in the top decile spend about `r exp_share_services_top_decile`% in the service sector, which has the lowest carbon intensity, compared to `r exp_share_services_bottom_decile`% in the bottom decile. Single country studies using EE-MRIO models with national resolution can pick up on differences in consumption baskets, but due to the homogeneous technology assumption in EE-MRIOs, cannot represent differences in technology between expenditure deciles.
Our results show that both of these factors play a role \@ref(fig:figure2). Lower-income households, on average, spend larger shares of their expenditure in the shelter sector. The bottom and top deciles spend an average of `r exp_share_shelter_bottom_decile`% and `r exp_share_shelter_top_decile`% of their household expenditure on shelter, respectively (this refers to environmental-footprint-relevant shelter expenditure. Our aggregated 'shelter' sector does not include rent. We have included the EXIOBASE production sector 'real estate services', which includes rent and other activities, in our aggregated 'services' sector, not the aggregated 'shelter' sector - see SI Table 4). Overall, with increasing expenditure decile, the shares of transport and services expenditures increase and the shares of shelter, food and manufactured goods decrease. At the same time, shelter is by far the most carbon intensive sector with the highest variance between expenditure deciles. In our sample, the intensity of all sectors decreases with expenditure level but the shelter sector stands out with a carbon intensity of consumption more than 3 times higher in the bottom decile (`r int_co2eq_shelter_bottom_decile` kgCO2eq/€) than in the top decile (`r int_co2eq_shelter_top_decile` kgCO2eq/€). Households in the top decile spend about `r exp_share_services_top_decile`% in the service sector, which has the lowest carbon intensity, compared to `r exp_share_services_bottom_decile`% in the bottom decile. Single country studies using EE-MRIO models with national resolution can pick up on differences in consumption baskets, but due to the homogeneous technology assumption in EE-MRIOs, cannot represent differences in technology between expenditure deciles.
The tendency for energy and carbon intensity to decrease with increasing affluence can be observed at the global level (ref) between countries and also applies within Europe [@sommer_carbon_2017]. In some of the Eastern European countries, between 80% and 100% of the population belong to the four lowest European expenditure deciles. This compares to less than 20% of the population in the higher-income European countries (Scandinavia, Germany, France, Austria, the Netherlands, Belgium, the UK, and Ireland). Note here that our analysis is based on average expenditure data from five income groups at the national level. This aggregation cuts off the lower and higher ends of the respective national expenditure distributions (see SI - Supplementary Note and Map).
The tendency for energy and carbon intensity to decrease with increasing affluence can be observed at the global level (ref) between countries and also applies within Europe [@sommer_carbon_2017]. In some of the Eastern European countries, between 80% and 100% of the population belong to the four lowest European expenditure deciles. This compares to less than 20% of the population in the higher-income European countries (Scandinavia, Germany, France, Austria, the Netherlands, Belgium, the UK, and Ireland). Note here that our analysis is based on average expenditure data from five income groups at the national level. This aggregation cuts off the lower and higher ends of the respective national expenditure distributions (see SI - Supplementary Note and Map).
