Alberto M. Zanni

The potential behavioural effect of personal carbon trading: results from an experimental survey

This paper contributes to the debate on the effectiveness of carbon trading schemes when contrasted with carbon taxes in reducing environmental externalities. An experimental survey explored individuals behavioural response to a personal carbon trading (PCT) scheme or a carbon tax (CT), both affecting personal transport and domestic energy choices. Responses were two-staged: first, whether to change behaviour or not, and second, how much to change. Results from the first stage indicate that those on high incomes and car users were less likely to change their behaviour, while those who had already changed their behaviour due to concern about climate change, lived in larger households or faced the CT were more likely to change. The second stage revealed fewer significant effects, the impact of already changing behaviour persisted and, in this case, those who faced PCT were likely to make greater changes. Both schemes appear to be capable of reducing individual carbon consumption; however, the evidence on the effectiveness of a PCT relative to a simpler CT is mixed and insufficient to make a strong case for such a complex scheme over a more straightforward tax.

Chapter 9 An Economic Perspective: The Cost-Effectiveness of Carbon Reduction Measures in Transport

Purpose To examine the cost-effectiveness of UK government policy with respect to the mitigation of carbon emissions from the transport sector. Methodology/approach Existing policy as set out by the Department for Transport in Low Carbon Transport: A Greener Future is examined. This document elaborates a Low Carbon Transport Strategy intended to achieve annual emissions savings of 17.7 MtCO2 by 2020. A wide range of policy areas where further action could be taken to reduce carbon emissions are examined and their cost-effectiveness considered. Findings Measures that influence behaviour including smarter choices, eco-driving across modes, freight best practice and modest price increases are highly cost-effective. More cost-effective routes to saving 17.7 MtCO2 are identified, as are further cost-effective savings. Originality/value It appears that government targets could be delivered and indeed exceeded at lower cost than the Low Carbon Transport Strategy. However, policy development is influenced by a wide range of factors which help to explain why cost-effective measures are not always fully exploited.