Measuring the direct and indirect effects of low-carbon lifestyles using financial transactions

This study investigates the net effect of four low-carbon lifestyle options that could potentially be adopted by many individuals and households to achieve substantial cuts in greenhouse gas emissions: not owning a car, not flying, not living in a detached house, and having a vegan diet. We evaluated the direct and indirect effects of these options on the carbon footprints of a sample of 715 individuals. Their emissions were calculated using a carbon calculator app that estimates the footprint associated with their consumption, based on financial transaction data from their bank(s) in combination with a lifestyle survey and data from official databases. This data also provides the basis for a detailed analysis of how differences in spending and greenhouse gas emissions in one consumption domain can rebound and/or spillover into other domains. Our results show that these four lifestyle options are associated with substantial net emission reductions, ranging from 0.5 to 1.5 tonnes of CO2eq/cap/yr each. The results also suggest that, contrary to the theory of economic rebound effects, the indirect effects of these practices are related to further emission reductions in other consumption domains, except for people who do not fly, for whom we saw a very limited rebound effect. The sample has on average relatively strong pro-environmental personal norms, which limits the generalizability of the results and calls for further research.