Targeting carbon reduction in UK households: A new segmentation model using financial transaction data

Jasmine Wells, Anna Trendl, Anne Owen, John Barrett, Norbert Jobst and David Leake

Journal of Industrial Ecology, 2025, vol. 29, issue 3, 846-862

Abstract: Designing effective and targeted policies to reduce household emissions needs to consider variability in household consumption patterns, preferences, and financial capacities. This paper introduces a new segmentation model of household carbon footprints that uses financial transaction data from over 700,000 customers of a major high‐street bank. Our approach considers socioeconomic, consumer‐preference, and spatial factors to identify 10 distinct household typologies. We focus on targeted retrofit as a practical application, identifying three high‐impact household types with the capacity to invest—“Suburban Home Improvers,” “Car and Tech Enthusiasts,” and “Affluent Families”—and suggest targeted policy and communication opportunities. Our segmentation supports a new data‐driven policy design that considers both the technical potential and diverse behavioral factors affecting decarbonization decisions.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:29:y:2025:i:3:p:846-862

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