Ensuring Equality from the “Low Carbon Dividend”

Climate change has been described as the most pressing issue of the age and research shows that its effects will be felt unequally across the globe with the poor south more likely to suffer from rising sea levels and disruption of food production than the richer north. Mitigating actions, especially the replacement of fossil fuels with alternative forms of energy, could reduce this inequality and the continuing fall in the cost of renewables offers the prospect of cheaper energy for all, increasing energy access and reducing the incidence of energy poverty.

With reference to two recent studies into energy poverty in Western Australia, we show that the advantages described above are by no means guaranteed. While many are enjoying a “low carbon dividend” as they switch to more energy efficient appliances and install solar panels, the most vulnerable in society are often unable to access these benefits, owing to their income status or housing tenure, and may actually see their energy bills increasing as fossil fuel prices rise and measures to price carbon take effect. We explore the effects of decarbonisation and rising energy costs across different household types and discuss the implications for future policy.

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Posted by IAFOR