Environmental Change Institute

Personal carbon allowances: a radical idea for reducing carbon emissions

Tina Fawcett

Outline of talk

Carbon emissions, Global and UK

Description of personal carbon trading

Research evidence

Its rise and fall in politics

The future of PCT

This idea used to be the future once....

Global carbon emissions rapidly increasing

Source: Peters, G. P et al, 2011, Rapid growth in CO2 emissions after the 2008–2009 global financial crisis, Nature Climate Change, Published online 04 December 2011

Fossil fuel CO2 emissions, PgC/yr

UK carbon emissions, 1990-2010

Source: DECC 2011, Statistical release: UK climate change sustainable development indicator: 2010 greenhouse gas emissions, provisional figures and 2009 greenhouse gas emissions, final figures by fuel type and end-user

Personal carbon trading

Idea developed in the UK in late 1990s, separately by two independent researchers, Mayer Hillman and David Fleming.

Changing terminology: Carbon rations personal carbon allowances personal carbon trading (aka individual carbon allowances / trading, carbon credit cards...)Domestic tradeable quotas (DTQs) tradeable energy quotas (TEQs)

PCT overviewPersonal carbon trading is a umbrella term which covers

a number of specific policy proposals.

Personal carbon allowances

Equal rations for all individuals

Tradable allowances

Energy used in the household and for personal transport are both included

Year-on-year reduction of the annual allowance, signalled well in advance

Mandatory

Why is trading necessary?Annual personal carbon emissionsTonnes CO2e

25

5

10

15

20

0

Retired woman in 2 person household. Average household emissions. No car. Flights include Brazil, Sri Lanka and Malaysia. 26.2t

Working woman, lives alone. Electricity as heating fuel. No car. One EU flight. 3.4t

Working woman, lives with partner. High household emissions. More than double av. car mileage. No flights. 5.7t

Man in 3 person household. Works largely from home – high emissions. Twice national average car travel. Flights to Spain and South Africa 13.3t

Retired man, lives with partner. Electricity is main heating fuel. No car, extensive travel by bus & coach. No flights. 2.1t

UK average 5.4t

Routes to deliver emissions reductions

PCAPCA

Economic behaviourCarbon price signal from higher energy prices; financial incentives to reduce energy demand

Social normsNew definitions of a fair share of personal emissions and acceptable & unacceptable levels of personal emissions

Carbon emissions reduction

Carbon emissions reduction

Energy demand reduction

Carbon perceptionAwareness of personal carbon footprint from the allocation, budgeting process and raised visibility

Economic motivations

Psychological intrinsic

motivations

Social motivations

Source: Yael Parag

Research evidence on social acceptabilityResearcher(s) Method Number of

participantsPolicy context

Low, 2005 Focus groups 30-40 PCT compared with increased carbon taxation

Howell, 2007 Focus groups 30-40 PCT compared with increased carbon taxation

Von Knobelsdorff, 2008

Questionnaires by post and email

300+ PCT in isolation, no comparison with other policy

Harwatt, 2008 Interviews, using questionnaires and unstructured replies

60+ PCT for transport only, compared with increased fuel taxation, with personalised information on extra costs

Bristow et al, 2008 Questionnaires 300 PCT compared with increased taxation and revenue recycling, with personalised information on extra costs

IPPR, 2008 Opinion poll, online 1000+ PCT compared with carbon taxation and upstream cap and trade

Owen et al, 2008 Focus groups 80-90 PCT compared with carbon taxation and upstream cap and trade

Wallace et al, 2010 Questionnaires and semi-structured interview

330 (questionnaire)21 (interview)

PCT in isolation, no comparison with other policy

Jagers et al, 2010 Questionnaire 940 PCT compared with existing carbon tax (Sweden)

Source: Fawcett, T. 2010 Personal carbon trading: A policy ahead of its time? Energy Policy 38 (2010) 6868-6876

PCT and the policy process2000- PCT being researched by small number of people

2006-07 Profile raised by David Miliband, then Secretary of State for Environment

2007-08 Programme of ‘pre-feasibility’ research work commissioned by Defra. Conclusions raised issues of cost and public acceptability as major barriers, PCT ‘ahead of its time’

2008 Environmental Audit Committee, House of Commons published results of its enquiry, ‘regretted’ Defra’s decision to wind-down

further research work

2009 Sustainable Development Commission named PCT as one of the ‘Breakthrough ideas for the 21st century. (2011 SDC abolished)

2009-11 Little political or policy making attention paid to this idea

Rise and fall of newspaper reporting

Increasing academic interest

Current status of PCT (1)ResearchVery little funded research underway at present (but continuing interest by post-grad students)‘Trial’ underway in Norfolk Island, AustraliaRelated research: two studies underway on distribution of carbon footprints

Commercial sectorWSP runs a scheme based on PCT called PACT, now operational in 8 countries with 1,600 members

PoliticsGreen Party policyGroup of MPs sponsored publication of booklet on DTQs (2011)

Current status of PCT (2)

Community actionCRAGs network – Carbon Reduction Action Groups – still in existence, though less active than formerly500 – 600 grass roots organisations in UK working on carbon reduction

Support from environmental NGOs and prominent environmentalistsNo statements of support from Greenpeace / FoESupported by Jonathon Porritt (in 2008)Briefly supported by Mark Lynas and George Monbiot

Snapshot of 2006/7 and 2011  2006-7 2011

UK political interest Secretary of State for Environment promoting the idea, government commissions research

No interest by major political parties, but is Green Party policy (Green Party have one MP).

UK community involvement

Growing CRAGs network Smaller and less active CRAGs network. 500-600 climate change and low carbon futures groups.

Private sector None WSP PACT schemePotential private sector involvement in NICHE project

Environmental NGOs Little support or interest Little support or interest

Research in UK Research underway in a small number of universities and think tanks.

No significant UK research funding.

Research outside UK Very little, if any NICHE pilot study in Australia

Knowledge base 3 journal articles 35 journal articlesCO2 concentration level in atmosphere (ppm) (Tans 2011)

381.9 (2006) 

389.8 (2010)

What is needed for PCT to be reconsidered as a policy option?

• Failure to meet the UK carbon reduction targets • Political leaders needing new ideas• Influential NGO takes up the idea• Idea tried out in another country and shown to succeed• Positive, good quality evidence on efficacy / efficiency /

cost / acceptability• Green Party in government!• Needs to be re-invented in a country more sympathetic to

collective social change?• Re-branded and re-launched

Why I still think it’s a good idea

•Potentially it offers a route to effective and equitable carbon savings •Research so far hasn’t shown any insurmountable obstacles (although a lot is still unknown)•It raises a lot of important questions•It’s a challenging and radical policy idea of the sort which will be needed if we’re to meet UK and global carbon reductions targets