Abstract
This research delves into a crucial yet often neglected aspect of total carbon emissions—household carbon emissions (HCEs). Utilizing data from the China Household Finance Survey (CHFS), this paper examines the causal relationship between the reference-dependent point for expected income (RDPEI) and HCEs through both theoretical and empirical lenses. The theoretical analysis suggests that relative gains and losses in household income depend on the expected income reference point as a criterion for judgment. It posits that HCEs will increase with the expansion of relative losses formed between expected and actual income. Empirical results indicate that the RDPEI, formed by the relative gain or loss of income between actual and expected income, has a significant positive effect on HCEs. Mechanism analysis reveals that RDPEI influences HCEs not only through loss aversion, risk preference, and the share of household subsistence consumption but also by altering the share of household subsistence consumption through loss aversion and risk aversion. Furthermore, an exploration of group heterogeneity shows that RDPEI more substantially affects HCEs for women and socio-economic groups with lower education and health status. Regarding carbon emission structural heterogeneity, RDPEI has a more pronounced positive effect on survivable and developmental carbon emissions. This research offers a fresh perspective and empirical evidence to address rising HCEs, providing valuable insights for mitigating carbon emissions in other developing countries.
Zhang, Z.; Zhang, K.; Qian, J.; Chen, X.; Song, M. 2025. Linking reference-dependent point for expected income to household carbon emissions: Evidence from China. Journal of cleaner production : Elsevier. ISSN 0959-6526. eISSN 0959-6526. 486, 144434, p. 1–13. DOI: 10.1016/j.jclepro.2024.144434. [Scopus; Science Citation Index Expanded (Web of Science)].