International evidence on household affordability of deep decarbonization

Kang Hua Cao; Yuk-Shing Cheng; Han Qi; Chi-Keung Woo

doi:10.1080/13504851.2025.2564310

International evidence on household affordability of deep decarbonization

Kang Hua Cao, Yuk-Shing Cheng, Han Qi^*, Chi-Keung Woo

^*Corresponding author for this work

Research output: Contribution to journal › Letter › peer-review

Abstract

We document international evidence on household affordability of deep decarbonization by applying a simple formula for an affordability index to publicly available market data. We conclude that economy-wide deep decarbonization policies are affordable for average households of the International Energy Agency’s member regions and therefore politically feasible for these regions.

Original language	English
Number of pages	5
Journal	Applied Economics Letters
DOIs	https://doi.org/10.1080/13504851.2025.2564310
Publication status	E-pub ahead of print - 24 Sept 2025

User-Defined Keywords

Deep decarbonization
IEA member regions
Carbon pricing
Expenditure function
Household affordability

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1080/13504851.2025.2564310

Cite this

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abstract = "We document international evidence on household affordability of deep decarbonization by applying a simple formula for an affordability index to publicly available market data. We conclude that economy-wide deep decarbonization policies are affordable for average households of the International Energy Agency{\textquoteright}s member regions and therefore politically feasible for these regions.",

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author = "Cao, {Kang Hua} and Yuk-Shing Cheng and Han Qi and Chi-Keung Woo",

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AU - Cheng, Yuk-Shing

AU - Qi, Han

AU - Woo, Chi-Keung

N1 - This study is funded by the Ford Foundation [#134371 and #139746] and the National Natural Science Foundation of China [#72473103]. Publisher Copyright: © 2025 Informa UK Limited, trading as Taylor & Francis Group

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N2 - We document international evidence on household affordability of deep decarbonization by applying a simple formula for an affordability index to publicly available market data. We conclude that economy-wide deep decarbonization policies are affordable for average households of the International Energy Agency’s member regions and therefore politically feasible for these regions.

AB - We document international evidence on household affordability of deep decarbonization by applying a simple formula for an affordability index to publicly available market data. We conclude that economy-wide deep decarbonization policies are affordable for average households of the International Energy Agency’s member regions and therefore politically feasible for these regions.

KW - Deep decarbonization

KW - IEA member regions

KW - Carbon pricing

KW - Expenditure function

KW - Household affordability

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M3 - Letter

SN - 1350-4851

JO - Applied Economics Letters

JF - Applied Economics Letters

ER -

International evidence on household affordability of deep decarbonization

Abstract

User-Defined Keywords

UN SDGs

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