Low-carbon policies can be ’balanced’ to benefit small firms and average households - study

A review of ten types of policy used to reduce carbon suggests that some costs fall on those less able to bear them - but it also shows these policies can form the bedrock of a 'green recovery' if specifically designed and used in tandem. Unless low-carbon policies are fair, affordable and economically competitive, they will struggle to secure public support Cristina Peñasco Some of the low-carbon policy options currently used by governments may be detrimental to households and small businesses less able to manage added short-term costs from energy price hikes, according to a new study. However, it also suggests that this menu of decarbonising policies, from quotas to feed-in tariffs, can be designed and balanced to benefit local firms and lower-income families - vital for achieving 'Net Zero' carbon and a green recovery. University of Cambridge researchers combed through thousands of studies to create the most comprehensive analysis to date of widely used types of low-carbon policy, and compared how they perform in areas such as cost and competitiveness. The findings are published today . The researchers also poured all their data into an interactive online tool that allows users to explore evidence around carbon-reduction policies from across the globe. "Preventing climate change cannot be the only goal of decarbonisation policies," said study lead author Dr Cristina Peñasco, a public policy expert from the University of Cambridge.