Observations on rations

Almost all current policy aimed at changing the way we use fossil fuel energy pins its hopes on technological breakthroughs: energy efficiency, renewable energy, the hydrogen economy, carbon capture and storage are among the dream solutions. While these approaches have their merits, history shows that technological advance has generally enabled individuals and organisations to use more energy, not less. For example, double glazing and better insulation have allowed people to heat conservatories in winter - something that would have been both technically challenging and prohibitively expensive when single glazing was the norm.

Instead, new policies are required that engage society with the need to make dramatic cuts in emissions and at the same time enable technology to play its part. One proposal that is attracting serious interest is a mandatory system of personal carbon allowances. This would deal with the half of UK carbon emissions that result from decisions made by individuals. Emissions from household energy use and personal travel are growing as the opportunities for energy use increase, such as cheap flights, air conditioning in cars, patio heaters as powerful as household boilers and always-on digital entertainment equipment.

Carbon allowances would work as follows. Each adult would receive an equal allowance, with children receiving a lower share. The annual allowance would reduce over time to make the necessary national savings. Allowances would be issued for free, and would be tradable. So those who lived a thrifty lifestyle would be able to make money by selling their spare quota and people with more carbon-intensive lives could buy more. Trading would be a vital part of the system, given that some people's carbon emissions today are more than ten times those of others.

The practicalities of the scheme would be straightforward. Every time you wanted to buy petrol, pay your gas or electricity bill or get on a plane, you would have to either surrender some of your carbon allowance or buy the necessary additional allowances. Everyone would have a carbon card with which to manage their carbon account. Carbon would become a parallel currency, and people would learn to manage their carbon budgets as they do their money. Support services would be available to those who have difficulties, much as people today can get help managing their financial affairs.

Carbon allowances would not operate in isolation. To help individuals adapt to a lower-carbon world, there would be many supporting policies to enable the right choices. These would include carbon labelling of houses, cars, appliances, lights and airline tickets, so the carbon consequences of purchase decisions would be very clear. Energy meters and bills would give customers much better information on their emissions. The introduction of carbon allowances would stimulate the formation of many new enterprises to help people live comfortably on a reducing carbon allowance. We might see the emergence of "CarbonWatchers", with carbon "weigh-ins" and expert help to reduce emissions.

The concept of carbon allowances is not without its critics, who suggest they would be complex to introduce, expensive, bureaucratic or unnecessary given the technological options for reducing emissions. Yet these critics have to answer a series of questions. What alternative framework would ensure significant carbon savings are made with certainty and equity? How else can the market be stimulated to provide low carbon solutions? What other policy options would require individuals to play their part in preventing disastrous climate change while enabling them to make choices about the balance of technologies and lifestyle changes to adopt?

The government's chief scientist, David King, has suggested that by 2050 the UK will need to cut carbon emissions by 80 per cent to avoid the worst consequences of climate change. Unless the critics provide convincing answers to these questions, we urgently need to explore fully the introduction of personal carbon allowances.

Dr Tina Fawcett is a researcher for the UK Energy Research Centre, based at the Environmental Change Institute, Oxford University, and is co-author with Mayer Hillman of How we can save the planet (Penguin Books)

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