ESC1864 - Consistent Economic Signals for Decarbonisation project

In the absence of an economy-wide carbon price, UK policies do not currently provide a consistent set of economic signals to reduce greenhouse gas emissions. A complex combination of tax measures, targeted subsidies and regulatory measures deliver financial incentives to reduce emissions (or 'implicit carbon prices') which vary arbitrarily across different economic sectors and energy-related activities. Similarly, current policy debates on economic drivers for decarbonisation tend to be fragmented and focus on sector-level or incremental changes. There is much less consideration of the pathway towards a more consistent economy-wide framework of price signals or economic drivers for decar…