This review tends to obtain a deeper understanding of the methods used in household energy consumption and carbon dioxide (CO₂) emissions in Iran. Issues relating to energy consumption and CO₂ emissions are very complex. This complexity arises from the fact that energy demand and energy consumption in Iran are influenced by many factors, such as income, household size, age, and gender. In Iran, the relevant energy sources mostly include liquefied petroleum gas (LPG) and electricity, which are used for different sectors, such as transportation, industry, and residential. This overview looks at both the theories and empirical studies of household energy consumption and CO₂ emissions in Iran. Since energy consumption typically results in air pollution, it is often used as an indicator of environmental degradation. Although Iran is recently faced to energy efficiency improvement from all sectors, household energy requirements have been significantly increased. In Iran, a prime motivator had been improving living standards. As Iran gradually turns into a consumer society, households have an enormous influence on the direct use of energy and related CO₂ emissions as well as through indirect use, as embodied in goods and services. The findings of this study can help policymakers to focus on renewable energy projects in order to reduce energy consumption and mitigate CO₂ emissions.