Personal Carbon Trading: Trade-off and Complementarity Between In-home and Transport Related Emissions Reduction

Personal carbon trading is a downstream version of the cap and trade approaches to mitigating carbon emissions from individual energy use. Although there are studies that investigate the theoretical and implementation issues, there is little evidence over the potential ways people could reduce their emissions when subject to a PCT policy. Especially little is understood about how people make tradeoff between or complement reducing emissions from transport and in-home energy use. This paper addresses this gap by reporting the findings of a questionnaire survey of stated intentions under the policy. Results show that, more people (53.6%) preferred to reduce their emissions from both transport and in-home energy use compared to from only one of these. This shows the flexibility offered by a cap including transport and in-home energy use is more efficient compared to a PCT covering either of these separately. Nearly three-fourths (76.2%) opted to reduce their emissions following a PCT policy. However, among those with above-budget initial emissions, a large share (79.6%) still could not reduce their emissions to below the budget and opted to purchase at least some permits to cover their emissions, indicating the difficulty in reducing emissions at the personal and household level.