Carbon rationing, equity and energy efficiency

Panel: Panel 1. Energy efficiency – a strategic choice for Europe

Author:
Tina Fawcett, Bartlett School of Graduate Studies

Abstract

This paper examines the prospects for domestic carbon rationing and its implications for current energy policies.

Carbon taxation proposals at an EU level have been repeatedly delayed, and the present British government is committed to not raising national taxes on domestic energy. Carbon rationing is an alternative mechanism to limit carbon emissions from the domestic sector. In addition, the most promising basis for a global greenhouse gas control protocol to succeed Kyoto is ‘contraction and convergence’, which is based on eventual equal emission rights for everyone. Domestic carbon rationing would replicate this principle.

Questions of equity are crucial to political and public acceptance of carbon reductions. Would a policy of equal carbon allowances be seen as fair, given the disconnection between energy services and carbon emissions created both by efficient technology and renewable energy? Data on energy expenditure and use from different income groups and according to number of people per household in Britain are presented. The important differences between these groups are highlighted.

Evidence from the historic experience of rationing food in Britain is used to explore how notions of fairness can be negotiated via the design of a rationing scheme. Various existing proposals for domestic carbon rationing are presented and compared. The applicability of this evidence to other European countries is discussed.

A carbon rationing regime would necessitate a changed role for energy efficiency. Suggestions for re-thinking current policies and instruments in order to maximise their effectiveness under carbon rationing are presented and forward-looking approaches are proposed.