Personal carbon allowances (PCAs) are a policy idea where each individual is given an equal, annually declining carbon allowance to cover their household and transportation emissions. PCAs would be tradable to accommodate different lifestyles. While this idea gained political attention in the UK in the 2000s, research found issues with cost and public acceptability. The concept has since lost political and media focus. However, proponents argue PCAs could effectively and equitably reduce emissions if researched further and implemented when political and social conditions are receptive to bold climate policies.

1. Environmental Change Institute
Personal carbon allowances: a radical
idea for reducing carbon emissions
Tina Fawcett

2. Outline of talk
Carbon emissions, Global and UK
Description of personal carbon trading
Research evidence
Its rise and fall in politics
The future of PCT

3. This idea used to be the future once....

4. Global carbon emissions rapidly increasing
Fossil fuel
CO2
emissions,
PgC/yr
Source: Peters, G. P et al, 2011, Rapid growth in CO2 emissions after the 2008–2009 global financial crisis, Nature Climate Change,
Published online 04 December 2011

5. UK carbon emissions, 1990-2010
Source: DECC 2011, Statistical release: UK climate change sustainable development indicator: 2010 greenhouse gas
emissions, provisional figures and 2009 greenhouse gas emissions, final figures by fuel type and end-user

6. Personal carbon trading
Idea developed in the UK in late 1990s, separately by
two independent researchers, Mayer Hillman and
David Fleming.
Changing terminology: Carbon rations  personal carbon allowances 
personal carbon trading (aka individual carbon allowances / trading, carbon
credit cards...)
Domestic tradeable quotas (DTQs)  tradeable energy quotas (TEQs)

7. PCT overview
Personal carbon trading is a umbrella term which covers
a number of specific policy proposals.
Personal carbon allowances

Equal rations for all individuals

Tradable allowances

Energy used in the household and for personal
transport are both included

Year-on-year reduction of the annual allowance,
signalled well in advance

Mandatory

8. Why is trading necessary?
Annual personal
carbon emissions
Tonnes CO2e
25
20
Retired woman in 2 person household. Average
household emissions. No car. Flights include Brazil,
Sri Lanka and Malaysia. 26.2t
Man in 3 person household. Works largely from home –
high emissions. Twice national average car travel.
Flights to Spain and South Africa 13.3t
15
Working woman, lives with partner. High household
emissions. More than double av. car mileage. No flights. 5.7t
UK average
5.4t
10
5
0
Working woman, lives alone. Electricity as
heating fuel. No car. One EU flight. 3.4t
Retired man, lives with partner. Electricity is main heating
fuel. No car, extensive travel by bus & coach. No flights. 2.1t

9. Routes to deliver emissions reductions
Economic
motivations
PCA
PCA
Psychological
intrinsic
motivations
Social
motivations
Economic behaviour
Carbon price signal from
higher energy prices;
financial incentives to
reduce energy demand
Carbon perception
Awareness of personal
carbon footprint from the
allocation, budgeting
process and raised
visibility
Social norms
New definitions of a fair
share of personal
emissions and acceptable
& unacceptable levels of
personal emissions
Energy
demand
reduction
Carbon
Carbon
emissions
emissions
reduction
reduction
Source: Yael Parag

10. Research evidence on social acceptability
Researcher(s)
Method
Number of
participants
Policy context
Low, 2005
Focus groups
30-40
PCT compared with increased carbon taxation
Howell, 2007
Von Knobelsdorff,
2008
Harwatt, 2008
30-40
300+
Bristow et al, 2008
Focus groups
Questionnaires by post
and email
Interviews, using
questionnaires and
unstructured replies
Questionnaires
IPPR, 2008
Opinion poll, online
1000+
Owen et al, 2008
Focus groups
80-90
PCT compared with increased carbon taxation
PCT in isolation, no comparison with other
policy
PCT for transport only, compared with
increased fuel taxation, with personalised
information on extra costs
PCT compared with increased taxation and
revenue recycling, with personalised
information on extra costs
PCT compared with carbon taxation and
upstream cap and trade
PCT compared with carbon taxation and
upstream cap and trade
Wallace et al, 2010
Questionnaires and semi- 330
structured interview
(questionnaire)
21 (interview)
Questionnaire
940
Jagers et al, 2010
60+
300
PCT in isolation, no comparison with other
policy
PCT compared with existing carbon tax
(Sweden)
Source: Fawcett, T. 2010 Personal carbon trading: A policy ahead of its time? Energy
Policy 38 (2010) 6868-6876

11. PCT and the policy process
2000-
PCT being researched by small number of people
2006-07 Profile raised by David Miliband, then Secretary of State for
Environment
2007-08 Programme of ‘pre-feasibility’ research work commissioned by
Defra. Conclusions raised issues of cost and public acceptability
as
major barriers, PCT ‘ahead of its time’
2008
Environmental Audit Committee, House of Commons published
results of its enquiry, ‘regretted’ Defra’s decision to wind-down
further research work
2009
Sustainable Development Commission named PCT as one of the
‘Breakthrough ideas for the 21st century. (2011 SDC abolished)
2009-11 Little political or policy making attention paid to this idea

12. Rise and fall of newspaper reporting

13. Increasing academic interest

14. Current status of PCT (1)
Research
Very little funded research underway at present (but continuing
interest by post-grad students)
‘Trial’ underway in Norfolk Island, Australia
Related research: two studies underway on distribution of carbon
footprints
Commercial sector
WSP runs a scheme based on PCT called PACT, now
operational in 8 countries with 1,600 members
Politics
Green Party policy
Group of MPs sponsored publication of booklet on DTQs (2011)

15. Current status of PCT (2)
Community action
CRAGs network – Carbon Reduction Action Groups – still in
existence, though less active than formerly
500 – 600 grass roots organisations in UK working on carbon
reduction
Support from environmental NGOs and prominent
environmentalists
No statements of support from Greenpeace / FoE
Supported by Jonathon Porritt (in 2008)
Briefly supported by Mark Lynas and George Monbiot

16. Snapshot of 2006/7 and 2011
2006-7
2011
UK political interest
Secretary of State for Environment
promoting the idea, government
commissions research
No interest by major political
parties, but is Green Party policy
(Green Party have one MP).
UK community
involvement
Growing CRAGs network
Smaller and less active CRAGs
network. 500-600 climate change
and low carbon futures groups.
Private sector
None
WSP PACT scheme
Potential private sector involvement
in NICHE project
Environmental NGOs
Little support or interest
Little support or interest
Research in UK
Research underway in a small
number of universities and think
tanks.
No significant UK research funding.
Research outside UK
Very little, if any
NICHE pilot study in Australia
Knowledge base
CO2 concentration
level in atmosphere
(ppm) (Tans 2011)
3 journal articles
381.9 (2006)
35 journal articles
389.8 (2010)

17. What is needed for PCT to be
reconsidered as a policy option?
•
•
•
•
•
Failure to meet the UK carbon reduction targets
Political leaders needing new ideas
Influential NGO takes up the idea
Idea tried out in another country and shown to succeed
Positive, good quality evidence on efficacy / efficiency /
cost / acceptability
• Green Party in government!
• Needs to be re-invented in a country more sympathetic to
collective social change?
• Re-branded and re-launched

18. Why I still think it’s a good idea
•Potentially it offers a route to effective and equitable
carbon savings
•Research so far hasn’t shown any insurmountable
obstacles (although a lot is still unknown)
•It raises a lot of important questions
•It’s a challenging and radical policy idea of the sort
which will be needed if we’re to meet UK and global
carbon reductions targets