2013 report for JRF by Preston, I., White, V., Thumim, J and Bridgeman, T, Centre for Sustainable Energy

This report considers the distribution of household carbon dioxide emissions in Great Britain, how they might be reduced and the differential impacts of existing policies for carbon management in the domestic sector. The report also makes proposals for alternative equitable ways for reducing household carbon dioxide emissions.

Summary

This study examines the distribution of carbon emissions across households in Great Britain and implications for energy and climate change policy. It assesses the fairness and effectiveness of policies to reduce domestic emissions and explores an alternative approach. The key points are:

• Household carbon emissions in Great Britain are strongly related to income: the richest 10 per cent of households emit three times that of the poorest 10 per cent from energy use in the home and personal travel.
• Current policies to reduce household carbon emissions have inequitable impacts: the average impact on household energy bills in England in 2020 is a 7 per cent reduction for the poorest 10 per cent and a 12 per cent reduction for the richest 10 per cent. This represents a triple injustice: the lowest income households pay more, benefit less from policies and are responsible for the least emissions.
• Anticipated decline in household energy bills in 2020 relates, in part, to potentially optimistic savings from improvements in product efficiency (i.e. appliances and lighting). If these are not realised, household energy bills in 2020 could rise by 4 per cent on average.
• The Feed-in Tariff (FIT) stands out as highly regressive: 12 per cent of households, with an average annual income of £62,389, are expected to benefit from FIT by 2020, by around £360 per year, but this is funded from all household energy bills and non-domestic customers who do not benefit.
• Current policies are expected to deliver a 45-million-tonne reduction in carbon dioxide emissions. Further emissions reductions are required after 2020 to meet targets.
• An alternative scenario to improving England’s housing stock gives a potential reduction of around 77 million tonnes. Low-income households would receive measures free, funded through taxation, carbon pricing mechanisms, means testing Winter Fuel Payments, and a Green Deal charge on wealthier households.