Designing Carbon Taxation to Protect Low-Income Households


There are strong policy arguments for removing environmentally perverse subsidies and for introducing carbon taxation to incentivise efforts to reduce carbon emissions. The difficulty from the perspective of social justice is that green taxes are unlike income tax; they do not directly relate to the ability to pay. This project has therefore examined whether it is possible to achieve a progressive approach to carbon taxation. Specifically, it examines how to design a revenue-neutral carbon tax on household energy use and transport, with a focus on safeguards to protect low-income households from losing money overall.

Preston, I., White, V., Browne, J., Dresner, S., Ekins, P. Hamilton, I. (2013) Designing Carbon Taxation to Protect Low-Income Households, Joseph Rowntree Foundation, York.

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ISBN: 978 1 85935 968 6 (PDF)