ESRI: Carbon taxes need not hurt poor

According to the Economic and Social Research Institute (ESRI), a recent study for the Environmental Protection Agency (EPA) showed that carbon taxes need not hurt the poor, because the revenues could be more than enough to compensate them.

The report proposes that over 90% of households on low incomes be targeted to receive compensation set at €246, the national average household carbon tax paid on fuel.

The only losers would be those that use above average amounts of carbon-emitting energy for reasons of wastefulness or need.

“As well as being efficient, carbon taxes can be fair,” said ESRI’s Sue Scott.

“The study shows how this can be done.”

The report also says that the economy will benefit from increased revenues should the tax be implemented.