The paper, published today, reveals that providing these services for free could reduce home energy emissions by 13.4%, and motor fuel emissions by 23.8%.
Carbon taxes on home energy and motor fuel often place a greater burden on low-income households because the same tax rate applies to every taxpayer, regardless of income. However, they contribute much less to climate change than high income households.
The researchers compared two ways of using revenue from carbon taxes to reduce emissions and fuel and transport poverty. They found that providing free green services would be more effective than redistributing the tax revenue among the population to address the regressive impacts of the taxes on lower earners.
Read more at: University of Leeds