An increasing amount of CO2 emissions from the household sector of Iran led us to analyze the inequality and understand the possible driving forces behind the CO2 emissions. The household sector in Iran contributes one of the largest sectors of CO2 emissions. The study of inequality provides information to policy‐makers to point policies in the right direction. By considering the differences in the socio‐economic factors of provinces, the study aims to analyze the inequality in CO2 emissions and different kinds of energy consumption, including oil, gas and electricity, for the household sector of Iran’s provinces between 2000 and 2019. Also, Household panel data of 28 provinces of Iran are employed by using both static and dynamic panel models for the years 2001 to 2019. This study investigates the relationship between CO2 emissions and the efficient factors in three major groups including energy, climate, and household socio-economic factors. the Theil index and Kaya factor, as a simple and common method, were considered to evaluate the inequality in both CO2 emissions and energy consumption, and determine the driving factor behind CO2 emissions. According to the results, inequality in oil and natural gas consumption were increasing, electricity was almost constant; however, CO2 emissions experienced a decreasing trend for the study period. The results of the Kaya factor indicate that the second factor, energy efficiency, with a 0.21 value was the main driving factor of inequalities in CO2 emissions. The empirical result of the static method showed a positive dependence of household CO2 emissions on Heating Degree Days (HDD), Cooling Degree Days (CDD), precipitation level, oil consumption, gas consumption, household income, size of household, and also building stocks. Also, removing the energy subsidy for fossil fuels due to substantial subsidy in fossil fuels in Iran or implementing a re-pricing energy policy can be a beneficial way to control carbon emissions from households within the provinces of the country.