Research Shows Carbon Tax Would be Effective in Tackling Both Emissions and Income Inequality
The Green Party have welcomed the findings of an ESRI study using data from the Central Statistics Office’s Household Budget Survey which suggests that carbon tax would be effective in tackling both emissions and income inequality.
The study found that while carbon taxes tend to have a bigger impact on the spending power of poorer households, this impact can be corrected if the revenue raised is returned to households. This could be done either by giving a flat fee to households or through a targeted mechanism that would give more money to poorer households.
Green Party Leader Eamon Ryan TD: “We welcome the findings of this research, it supports what we’ve been saying on the issue. We hope that the report may address some of the concerns that raised by the public and that it will help inform the ongoing work of the Joint Oireachtas Committee in time to influence the budget in October.”
“Climate change and wealth inequality are two of the biggest problems we face today, a well-planned carbon tax system could address both of these issues. We were the first party to suggest that any revenue generated by a carbon tax be returned directly to every household; the ESRI research shows that such an approach can have a positive impact on those suffering most from fuel poverty. It is a win-win solution, which puts a price on pollution but does not see those least able to afford the low carbon transition carrying the cost.”
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