Personal Carbon Allowances or carbon taxation?

Parliament’s Environmental Audit Committee think that personal carbon allowances would be a useful way of reducing emissions. The system that they have in mind is complicated and like most of the systems that really clever people invent it seeks to change people’s behaviour by a system of incentives and penalties and shies away from introducing any real measures, rather expecting that carbon emission reduction behaviour will follow as a result of the scheme.

Personal carbon allowances are supposed to work like this. Everyone would have a personal carbon cap and be given an allowance to emit. If they exceed their personal emissions they can buy allowances from people who have some spare and thus it would reward people who made positive efforts to reduce their emissions, just like your supermarket reward card. Continue reading