The Impacts of Households on Carbon Dioxide Emissions in Indonesia

This study aims to evaluate the direct and indirect contributions of household income and regional groups as well as their related sectors to CO2 emissions. The study utilized a semi-closed input?output model (IOM) along with the hypothetical extraction method (HEM) that can estimate emissions from interdependency between household and production sectors. The results show: (1) The direct and indirect impacts on carbon emissions caused by the consumption of households in urban areas are 1.5 times higher than those in rural areas; (2) there is a positive correlation between household income and its contribution to emissions; (3) there is a notable contribution from high-income urban households to CO2 emissions, up to 1.4 times higher than the poorest household in urban areas and 0.6 times higher than the highest income in rural areas; and (3) the transportation and food sectors drive household-related CO2 emissions the most, while the education, culture, and recreation sectors contribute the least. Our findings indicated that to decrease household energy-related emissions, the government should improve the technology efficiency of transportation and communication as well as the food sectors. There is also a need to have different emission reduction policy designs between households based on their income level, particularly for increasing stringency of emission policies for high-income households.

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