2021-11-23

The study found that using carbon tax revenue to fund free green electricity and public transport can reduce emissions

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c5193344b826b8a - The study found that using carbon tax revenue to fund free green electricity and public transport can reduce emissions

the carbon tax on household energy and automotive fuel usually puts a greater burden on low-income families because the same tax rate applies to every taxpayer, regardless of income. However, their contribution to climate change is much less than that of high-income families

the researchers compared two ways of using carbon tax revenue to reduce emissions and fuel and transportation poverty. They found that providing free green services would be more effective than redistributing taxes among the population to address the diminishing impact of taxes on low-income people

the study was led by Dr. Milena Buchs, associate professor of sustainable development, economics and low carbon transformation at the Institute for sustainable development at the University of Leeds. She said. “Strict climate policies, including carbon taxes on household energy and automobile fuel, may be part of the government’s strategy to achieve climate goals, but they impose a heavier burden on low-income families than rich families. The government urgently needs to make climate policies more equitable by finding ways to compensate vulnerable people.

” provide people with green life choices, Such as free green electricity and free public transport, is very promising because it is redistributed, saves emissions, and reduces fuel and transportation poverty. “

the research team studied the European household budget survey (HBS) Provided 275614 households’ expenditure data on household energy and automotive fuel from 27 European countries. The expenditure data were combined with the emission coefficient to estimate the annual greenhouse gas emissions of household energy and automotive fuel for each household.

then, they studied the impact of introducing two different compensation strategies to reduce the impact of the new carbon tax on low income Household impact.

they found that giving cash back through tax rebates without introducing additional low-carbon investments, such as renewable power or public transport, would only lead to a small reduction in household energy and vehicle fuel emissions. In contrast, the introduction of universal green certificates with the expansion of renewable power generation and public transport would reduce household energy emissions by 13.4%, Automobile fuel emissions will be reduced by 23.8%.

if green certificates and infrastructure are provided without the introduction of carbon tax, the emission reduction will be slightly lower, but 4.1% and 2.2% of households will get rid of the embarrassment caused by fuel and transportation respectively.

however, the combination of carbon tax and cash compensation will increase fuel and transportation poverty by 4.1% and 1.8%.

Dr. Buchs said“ These findings suggest that policies designed to compensate for the unfair distribution impact of carbon taxes need to be combined with additional environmental interventions. Society needs to expand the provision of green products and services and minimize the difficulties caused by fuel and travel, so as to achieve social and environmental goals at the same time. “