INTRODUCTION Lockdowns precipitated by COVID-19 have resulted in the necessary enforcement of measures (such as travel restrictions) which have helped another agenda- the Green agenda- and reduced carbon emissions.Alongside the pain of the pandemic people have seen some upsides including those of a healthier greener lifestyle.Now is the time to capitalise on this newfound awareness by rewarding consumers directly for positive lifestyle changes. THE CHALLENGE The Government is under a statutory and moral duty to cut carbon emissions and for the economy to be carbon neutral by , at the latest ,2050. No task could conceivably be more important that one considered necessary to save the planet itself. Reductions in atmospheric carbon may of course be achieved by carbon capture technology and by generating more power through “renewables” but also by reducing the power consumption of the country generally including the consumption of individual households. The government has also announced that it wishes to promote and grow the “green” sector of the economy (ie that sector which trades in goods and services which are low carbon or carbon neutral). It will no doubt spend considerable sums over the years in advertising and communication campaigns to persuade individuals and households to limit and control their energy use. THE SOLUTION My idea is that a large part of the cost of such campaigns ( whether on its own or topped up by additional funding) would be better applied towards offering consumers direct incentives to limit and reduce their power consumption.I also think that the incentives could be designed in a way that could promote the “Green” economy, thus killing two birds with one stone. Here, in outline, is how.
1. I shall call the amount of advertising/communication expenditure (possibly topped up as above) which the government diverts to such incentives “the Diverted Sums”. The Diverted Sums would be “paid” to consumers based on the amount by which they use less energy ( or by reference to any other desired metric involving energy usage) at a rate approved by the government .
2.The Diverted Sums would be apportioned and credited to consumers as “ Points” earned on a “Green Card” issued to each domestic user of power (gas, electricity or other fuels). The number of Points earned by each consumer would be calculated by taking information already being collected with their consent by the applicable power companies ( since they already collect- in order to work out their billing of customers- the information necessary to perform the relevant calculations). The information necessary to compute the Points is thus already available and all that would be required is the individual consent of the applicable consumer to their billing information being shared with those operating the Green Card scheme.
3.The “Points” would be redeemable by consumers only against all or part of the cost of acquiring “Qualifying Goods or Services” from “Approved Suppliers”. Qualifying Goods or Services would be those deemed by the operators of the scheme ,appropriately advised by independent experts (Friends of the Earth?) , as being suitably “green”- ( for example playing a sport (such as golf but not motor racing), or using little or no power in their production or use ( such as bicycles but not cars) or for some other appropriate green end ( such as solar panels) . “Approved Suppliers” would be UK owned manufacturers or providers of all or any of the forgoing Qualifying Goods or Services .
4. The “Green Card “ would be issued by or with the authority of the Government and they would be the guarantor ( in a way to be devised) of the value to the consumer (and through them the eventual Approved Suppliers) of the Points earned by the applicable consumer and applied towards the cost of Qualifying Goods or Services chosen by such consumer.
5.Possibly such Points could even be traded by consumers as between themselves as even Points acquired by a consumer in excess of those warranted by their own energy saving behaviour would go to the worthy purpose of assisting Approved Suppliers.
6. Thus, by diverting funds from advertising to direct incentives in this way, the Government would both encourage the required greenward change in consumers’ behaviour by rewarding reduced energy consumption, and also support the development of UK green businesses. This could be done using data already being collected by power companies.
SUMMARY
7. All participants would benefit: the Government in accelerating the move towards carbon neutrality: the consumer in obtaining not only the savings which come with reduced bills for their own power consumption but also with the value of the “Points” they would earn, the Approved Suppliers by driving new business in their direction; and even the power companies who would have the reputational benefit of playing their part in a worthy cause. The principle behind the scheme could be replicated by similar if not identical means in other countries and the UK could benefit reputationally by exporting its knowhow regarding the scheme once established.
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