Haven Power

Treasury should focus on carbon rather than energy use, academics say

Treasury should focus on carbon rather than energy use, academics say


The UK could fall short of its climate change targets if energy taxes continue to be based on the amount used rather than the greenhouse gases emitted, a new paper has said. Published on Monday 23 November by the Grantham Research Institute at the London School of Economics, the paper noted that carbon taxes were more effective than energy taxes at meeting climate goals and delivering energy efficiency gains. It said: “Carbon pricing addresses a specific market failure: the greenhouse gas emissions from energy use which cause climate change. Internalising this cost in the price of electricity will make users include the real cost of emissions in their decision about how much energy to consume.” 

Grantham Research Institute