Consumption-based indicators such as the energy and greenhouse gas footprint of households are largely determined by their spending levels. An inequality of household expenditures in a population therefore implies an inequality of their resource footprints. Figures 1a-c show European households by decile of expenditure and their associated resource footprints for GHGs and energy in 2015. The figures show that increasing expenditure generally translated into larger resource footprints, but that the inequality decreased from expenditure to energy to greenhouse gas emissions with 10:10 ratios (the top decile divided by the bottom decile) of 7, 3.5 and 2.6, respectively. Total expenditure ranged from 0.2 trn€ to 1.2trn€ (or X to Y per adult equivalent) across bottom and top decile, the energy footprint from 4.5 EJ to 15 EJ (or 132GJ/ae to 457 GJ/ae), and the GHG footprint from 220 MtCO2eq to 610 MtCO2eq (or 7 tCO2eq/ae to 18.1 tCO2eq/ae). The reason for this is evident from figures 1d-f. Both the energy intensity measured as energy use per € expenditure (d) and the carbon intensity measured as GHGs per unit of energy use (f) gradually decrease from bottom to top expenditure decile. The average energy intensity of consumption decreased from 25 MJ/€ in the bottom decile to less than half (12 MJ/€) in the top decile. Additionally, the GHG intensity of energy use was also higher in the bottom decile (53gCO2eq/TJ) compared to the top decile (40 gCO2eq/TJ). There is a clear trend of decreasing intensities across expenditure deciles even though the variance in the lower deciles is much higher. The GHG intensity of consumption (figure 1e) combines the effects of the intensities of 1d and 1f. [*The higher GHG intensity of energy use is likely due to a larger share of emission intensive energy carriers in the energy system. The decreasing energy intensity per expenditure is due to either inefficient energy technologies or energy subsidies in poorer areas in Europe.*]
Consumption-based indicators such as the energy and greenhouse gas footprint of households are largely determined by their spending levels. An inequality of household expenditures in a population therefore implies an inequality of their resource footprints. Figures 1a-c show European households by decile of expenditure and their associated resource footprints for GHGs and energy in 2015. The figures show that increasing expenditure generally translated into larger resource footprints, but that the inequality decreased from expenditure to energy to greenhouse gas emissions with 10:10 ratios (the top decile divided by the bottom decile) of `r exp_10_10`, `r ene_10_10` and `r co2eq_10_10`, respectively. Total expenditure ranged from 0.2 trn€ to 1.2trn€ (or X to Y per adult equivalent) across bottom and top decile, the energy footprint from 4.5 EJ to 15 EJ (or 132GJ/ae to 457 GJ/ae), and the GHG footprint from 220 MtCO2eq to 610 MtCO2eq (or 7 tCO2eq/ae to 18.1 tCO2eq/ae). The reason for this is evident from figures 1d-f. Both the energy intensity measured as energy use per € expenditure (d) and the carbon intensity measured as GHGs per unit of energy use (f) gradually decrease from bottom to top expenditure decile. The average energy intensity of consumption decreased from 25 MJ/€ in the bottom decile to less than half (12 MJ/€) in the top decile. Additionally, the GHG intensity of energy use was also higher in the bottom decile (53gCO2eq/TJ) compared to the top decile (40 gCO2eq/TJ). There is a clear trend of decreasing intensities across expenditure deciles even though the variance in the lower deciles is much higher. The GHG intensity of consumption (figure 1e) combines the effects of the intensities of 1d and 1f. [*The higher GHG intensity of energy use is likely due to a larger share of emission intensive energy carriers in the energy system. The decreasing energy intensity per expenditure is due to either inefficient energy technologies or energy subsidies in poorer areas in Europe.*]
```{r figure1, out.width="98%", fig.cap="Expenditure and resource footprints and intensities across European expenditure deciles. Total expenditures (a), energy footprint (b), and GHG footprint (c) per decile. Energy intensity as energy footprint per expenditure (d), GHG intensity as GHG footprint per expenditure (e), and GHG intensity as GHG footprint per energy footprint (f)."}