Exploring the impacts of housing wealth on the evolution of household carbon emissions in China

Our study explores the nexus between housing wealth and household carbon emissions (HCEs) in China, using data from the China Family Panel Studies (CFPS) spanning 2014 to 2020. We find housing wealth positively correlates with HCEs, with stronger effects in households with agricultural hukou, young heads, low education, low income, multiple dwellings, and those in central or resource-based regions. The mechanism analysis shows that housing wealth drives HCEs through higher consumption, particularly in carbon-intensive goods like appliances and transportation, without altering overall consumption structure. The Oaxaca-Blinder decomposition reveals that housing wealth explains less than 20 % of the increase in HCEs during economic growth (2014-2018) but accounts for 68.5 % of the reduction in HCEs during the post-COVID economic downturn (2018-2020). These findings provide valuable insights for understanding the emissions impact of housing wealth, offering guidance for predicting future emission trends in China and other developing regions experiencing housing booms.