Our data 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.
The tendency that the emission intensity for direct energy consumption decreases with increasing affluence can be observed at the global level (XXX) between countries and also applies within Europe. 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 richer 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 upper ends of the respective national expenditure distributions (Supplementary Note and Map).
The tendency for energy and carbon intensity to decrease with increasing affluence can be observed at the global level (XXX) between countries and also applies within Europe. 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 high intensities in the bottom four European expenditure deciles can be attributed in large part to inefficient domestic energy supplies for heating and electricity generation in Poland, Bulgaria, the Czech Republic, and Romania. Poland alone was responsible for about 40% of total coal combustion for heat production in Europe in 2015 and had a higher average carbon intensity per MJ of heat delivered than both Europe and the world (XXX). These differences in specific energy and carbon intensities in basic services sectors (especially shelter) account for the smaller inequality between expenditure deciles in terms of environmental footprints compared to raw expenditures.
The high intensities in the bottom four European expenditure deciles can be attributed in large part to more inefficient and dirtier domestic energy supplies for heating and electricity generation in Poland, Bulgaria, the Czech Republic, and Romania. Poland alone was responsible for about 40% of total coal combustion for heat production in Europe in 2015, and had a higher average intensity of carbon per MJ of heat delivered than both Europe and the world [@werner_international_2017]. These differences in energy and carbon intensities in basic, non-luxury sectors (especially shelter) account for the smaller inequality between expenditure deciles, in terms of environmental footprints compared to raw expenditures.
