This paper investigates the role of income-driven differences in consumption patterns in explaining and projecting energy demand and <i>CO_2</i> emissions. We develop and estimate a general-equilibrium model with non-homothetic preferences across a large set of countries and sectors, and trace embodied...

This paper investigates the role of income-driven differences in consumption patterns in explaining and projecting energy demand and CO₂ emissions. We develop and estimate a general-equilibrium model with non-homothetic preferences across a large set of countries and sectors, and trace embodied...

Correctly accounting for the energy and emissions embodied in consumption and trade is essential to effective climate policy design. Robust methods are needed for both policy making and research—for example, the assignment of border carbon adjustments (BCAs) and greenhouse gas emission...