Institute for Public Policy Research / by Jimmy Aldridge and Will Straw
[Left Foot Forward] …Our analysis shows that if the [UK] carbon tax was frozen at its current level but a cap was placed on the levels of carbon pollution that any coal station could release each year then coal generation would stop altogether by 2025 but consumers would be able to benefit from a small but welcome annual saving of £8.41.
Investors in new power stations or energy-saving technologies would benefit because once they know that coal is coming offline they will benefit from a bigger market share. This will have the effect of lowering the cost of investments in cleaner power stations, and offering us improved energy security.
Families will save cash and important manufacturing businesses here will become more competitive, and crucially it would send a clear signal to the world that Britain remains serious about playing our part in the international effort to reduce the risks from climate change.
This should be a no-brainer.