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Abstract
New Zealand’s per capita greenhouse gas emissions are usually calculated by taking total
emissions as reported under the Kyoto Protocol or the United Nations Framework Convention
on Climate Change and simply dividing by population. However this focuses on emissions
associated with production within New Zealand. From the point of view of individuals, these are
not the emissions they control, and hence can mitigate. Individuals can calculate their “carbon
footprint” but tools to do this typically focus on a few categories of emissions (mostly electricity,
direct fuel use and waste) and emissions footprints are not available for a wide range of
households so cannot be used for comparative analysis. This paper explores how the carbon
emissions related to the consumption categories of households in New Zealand vary with
household characteristics. We use product consumption data from the 2007 Household
Economic Survey. Consumption within each category is linked to a carbon intensity multiplier
(tonnes of carbon dioxide equivalent per dollar of consumption) which is derived from: the
official 2007 input–output table of 106 industries produced by Statistics New Zealand; energy
data on carbon dioxide per petajoule of fuel in each industry from the Energy Data File; and the
Energy Greenhouse Gas Emissions Report both provided by the Ministry of Business,
Innovation and Employment. Previous literature has used similar methods to calculate the
incidence of a carbon tax (e.g. Creedy and Sleeman [2006]). This paper uses these methods in
order to study which sectors of household expenditure offer the greatest opportunities for
mitigation and how these opportunities vary with household characteristics such as income
decile, region and household composition.