Green retirement: The impact of retirement on carbon emissions through consumption and income dynamics

Wei Huang, Xiaoyan Lei and Chunfeng Zhang

Journal of Comparative Economics, 2025, vol. 53, issue 3, 727-753

Abstract: This paper investigates the impact of retirement on carbon emissions, using China's compulsory retirement age policy as an exogenous source of variation. By applying a regression discontinuity design (RDD) to individual-level data, we identify a "green retirement" effect, where retirees reduce their carbon emissions due to income declines and changes in consumption behavior. For men, this reduction primarily stems from a decrease in consumption quantity, while for women, both a reduction in quantity and a shift toward more environmentally friendly consumption play a role. The effect is more pronounced among individuals with higher educational attainment, indicating that socioeconomic factors influence the environmental impact of retirement. These results suggest that demographic shifts could support sustainability efforts by aligning retirement policies with environmental goals.

Keywords: Retirement; Carbon emission; Green transition (search for similar items in EconPapers)
JEL-codes: D12 H55 J26 Q54 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:53:y:2025:i:3:p:727-753

DOI: 10.1016/j.jce.2025.04.002

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