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This paper calculated the inventory of CO2 emission in China based on input-output model, and then estimated CO2 emission induced by urban and rural household consumption based on statistic data of household living expenditure from 1995 to 2004 in China. The results show that from 1995 to 2004, CO2 emission per capita induced by household consumption has increased from 911kgCO2 to 1,564kgCO2. The ratio of consumption-induced CO2 emission to total CO2 emission has risen from 37% to 45% in the past decade. CO2 emission per capita induced by urban household consumption has increased from 1,583kgCO2 to 2,498kgCO2. CO2 emission per capita induced by rural household consumption has grown from 636kgCO2 to 894kgCO2. Change in lifestyle has driven significant increase in CO2 emission. It can be expected that households in low-income regions will increase consumption to improve their livings with income growth in future. Although it may induce much more CO2 emission, a reasonable level of CO2 emission is needed to satisfy human basic needs and to improve household livelihood. A noticeable fact is that CO2 emission per capita induced by household consumption in developed areas of China has reached at a quite high level. Adjustment in lifestyle towards low-carbon society is required urgently.