Mexico's Carbon Inequality: Why Income Matters

55 Pages Posted: 16 Aug 2023

See all articles by Daniel Itzamna Avila Ortega

Daniel Itzamna Avila Ortega

Stockholm University - Stockholm Resilience Center

Stephanie Garcidueñas Nieto

University of Antwerp

Daniel D. Moran

Norwegian University of Science and Technology (NTNU); The Climate and Environment Institute NILU

Sarah Cornell

Stockholm University - Stockholm Resilience Center

Jordi Cravioto

affiliation not provided to SSRN

Peter Søgaard Jørgensen

Stockholm University

Cynthia Flores-Santana

affiliation not provided to SSRN

Rigoberto García Ochoa

affiliation not provided to SSRN

Gustav Engstrom

The Beijer Institute of Ecological Economics

Abstract

Income inequality poses a significant challenge for many countries, including Mexico. By 2018, according to CONEVAL, 52.4 million Mexicans were living in poverty, equalling 41.9% of the population. Mexico’s status as the 15th largest economy worldwide makes it a compelling case for analysing income distribution and its impacts on social class structure, particularly since Mexico was the 11th largest GHG emitter. This study focuses on exploring the dynamics of income and carbon inequality, assessing the differences between deciles, geographic domains such as urban and rural ones and 32 States. We do this by using Mexico’s  2018 National Household Income and Expenditure Survey coupled with an environmentally extended multi-regional input-output model to estimate decile’s consumption-based carbon footprints. We find that per capita GHG emissions by the 1% ultra-rich were 12 and 8.5 times bigger than the 10% low- and middle-income deciles, respectively. As such only a quarter of the Mexican population is within the Paris Agreement carbon budget (less than 2.2 tCO2e per capita). Reducing poverty and inequalities seems imperative for a country that is and will continue to be largely affected by climate change. Still, it should not come at the expense of increasing the carbon footprint per capita.

Suggested Citation

Avila Ortega, Daniel Itzamna and Garcidueñas Nieto, Stephanie and Moran, Daniel D. and Cornell, Sarah and Cravioto, Jordi and Søgaard Jørgensen, Peter and Flores-Santana, Cynthia and García Ochoa, Rigoberto and Engstrom, Gustav, Mexico's Carbon Inequality: Why Income Matters. Available at SSRN: https://ssrn.com/abstract=4542924 or http://dx.doi.org/10.2139/ssrn.4542924

Daniel Itzamna Avila Ortega (Contact Author)

Stockholm University - Stockholm Resilience Center ( email )

Kräftriket 2B
Stockholm, SE-114 19
Sweden

Stephanie Garcidueñas Nieto

University of Antwerp ( email )

Prinsstraat 13
Antwerp, 2000
Belgium

Daniel D. Moran

Norwegian University of Science and Technology (NTNU) ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

The Climate and Environment Institute NILU ( email )

Kjøpmansgata 8
Trondheim, 7013
Norway

Sarah Cornell

Stockholm University - Stockholm Resilience Center ( email )

Kräftriket 2B
Stockholm, SE-114 19
Sweden

HOME PAGE: http://https://www.stockholmresilience.org/

Jordi Cravioto

affiliation not provided to SSRN ( email )

No Address Available

Peter Søgaard Jørgensen

Stockholm University ( email )

Cynthia Flores-Santana

affiliation not provided to SSRN ( email )

No Address Available

Rigoberto García Ochoa

affiliation not provided to SSRN ( email )

No Address Available

Gustav Engstrom

The Beijer Institute of Ecological Economics ( email )

Stockholm, SE-104 05
Sweden

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