Ghoddusi et al. (2021) argue that the gap between the income elasticity of demand and the income elasticity of consumption depends on the slopes of both the demand and supply curves. In particular, they contend that in extreme cases where the demand curves are perfectly elastic, aggregate...

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...