HOUSEHOLD EMISSIONS REDUCED THROUGH FREE GREEN SERVICES
The use of carbon tax revenue to fund public transport and free green electricity could be the way to significantly reduce household GHG emissions. The information that drives this idea can be found in a paper published on the 23rd of November 2021, by the University of Leeds, that reveals that providing these services for free could reduce home energy emissions by 13.4%, and motor fuel emissions by 23.8%. The study was led by Dr Milena Buchs, Associate Professor in Sustainability, Economics and Low Carbon Transitions in Leeds’ Sustainability Research Institute.
The carbon taxes on home energy and motor fuel often place a greater burden on low-income households because the same tax rate applies to every taxpayer, regardless of income, even though they contribute less to climate change than high income households.
The two viable options that have been researched were ‘redistributing the tax revenue among the population’ and ‘providing free green services’. The research has determined that providing free green services would be more effective than redistribution.
Dr Milena Buchs said “Stringent climate policies, including carbon taxes on home energy and motor fuels, are likely to be part of government strategies to achieve climate targets, but they put higher burdens on low-income households than on rich households. Governments urgently need to make climate policies fairer by finding ways that can compensate disadvantaged people. Providing people with green living options, like free green electricity and free public transport, is promising because it’s re-distributive, saves emissions and reduces fuel and transport poverty.”