Household income plays an important role in the improvement of the standard of living. However as the standard of living of the household improves, it also causes environmental degradation. This study investigatesthe environmental impacts of living standard of the households in District Mardan. The impact of other factors such as household size, location of the household (urban or rural) and education of the households is also estimated. The study used primary data of 267 households collected through the questionnaire. The questionnaire consists of the information relevant to the households direct energy consumption and different socio-demographic information. The results are estimated through regression model. Findings show that household income is significant factor in increasing CO2 emissions in District Mardan. A positive relationship is also found between household size, education and CO2 emissions. Findings also reveal that EKC is valid in case of rural areas but not in urban areas because of the carbon intensive consumption activities of urban households. Hence an effective policy formulation stressing on public awareness programs, incentives of tax reductions, and better public transport network is conducive to the reduction of CO2 emissions in the selected District. Supervisor:- Dr. Anwar Hussain