Make green services free by using carbon tax funds: Carbon tax revenue should be put into funding free green electricity as well as clean public transport to lower individuals’ emissions.
That’s according to a new study by the University of Leeds, which has discovered that supplying these services for free may lower home energy emissions by 13.4% & vehicle fuel emissions by 23.8%.
It points out that even though low-income households contribute the least to climate change than those with a higher income, they pay the equal carbon tax rate on home energy & motor fuel.
The researchers have advised that using the profit from those taxes to slash emissions, fuel & transport poverty would be way more useful than simply redistributing it across the population.
They say this would not just lower the financial strain paying these taxes puts on lower income households but would further incentivise additional people to adopt cleaner methods from different backgrounds, as a main factor blocking the way of everyone using clean energy & technologies is their price.
The study showed that giving cash back by way of tax rebates, instead of using it to finance free green transport or cheaper renewable electricity will not bring about the same cut in emissions.
Lead author, Dr Milena Buchs, stated: “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 & reduces fuel and transport poverty.”
Make green services free by using carbon tax funds