ANNOUNCEMENTS
With the introduction of liberalization, privatization, and globalization (LPG) policies, there has been a boost in India’s economic growth and thus demand for carbon-intensive commodities. There is a growing concern about the effects of conspicuous consumption by Indian households on the environment and climatic conditions. Although India’s per capita carbon emissions are quite less in comparison to other nations, its total carbon emission is rising significantly over the years. Much of the current literature in India restricts itself to sectoral carbon emissions, and the estimates are quite outdated. There is a need to analyze the rural-urban divide in carbon emissions across MPCE deciles. This master’s thesis seeks to fill that gap by using Environmental Kuznets Curve as a theoretical framework and the latest data on consumption expenditure from the 72nd round of NSSO for the year 2014-15. The research aims to analyze the change in consumption patterns with a rise in income by disaggregating household expenditure into deciles. This is done for both electrical and non-electrical appliances in rural and urban areas. The analysis led to the conclusion that electrical appliances (mobile phones, computers, television, and air conditioner) form a major source of carbon emissions, especially amongst wealthy households in urban areas, due to the availability of electricity grids, financing schemes, high awareness, and education levels. Finally, this study estimates the Climate Injustice Quotient, differentiating between households by MPCE deciles for each of the appliances purchased, where the top three deciles should be taxed for the benefit of the first seven deciles.
