Households contribute at least 20% to total U.S. carbon emission, but there is little scientific literature exploring this area. The purchase of carbon offsets is a new approach for households to manage their emissions or become carbon neutral. The primary concern behind carbon offsets is that co... Show moreHouseholds contribute at least 20% to total U.S. carbon emission, but there is little scientific literature exploring this area. The purchase of carbon offsets is a new approach for households to manage their emissions or become carbon neutral. The primary concern behind carbon offsets is that consumers will substitute from efficiency for offsets. The objective of this study was to find the effects of carbon offsets on efficiency purchases and net household carbon emissions. First, an economic model examining the factors that influence household efficiency choices was mapped out. Then an online survey was used to observe the choices consumers make. It was found that participants lacked information about their carbon emissions (only 6% had ever calculated their carbon emissions online) or carbon offsets (26% had heard of carbon offsets). More than half of participants, however, were interested in receiving monthly reports about their emissions for their utilities and transportation. When asked about their willingness-to-pay for carbon neutrality for utilities, almost 50% were willing to pay some amount. Also, for higher costs goods, consumers were more likely to substitute efficiency for offsets. Using a mixture of efficiency and offsets as opposed to choosing efficiency only could curt emission by as much as 51% versus efficiency only. Results imply that carbon offsets are an effective and convenient tool in reducing carbon emissions, or at least make consumers more aware or their emissions. If governments or companies could communicate this information to consumers, also allowing them the option to offset, then major reductions in household carbon emissions could occur. Show less
