Personal Carbon Trading

A couple of weeks ago I attended a presentation by the RSA, a British think tank, on personal carbon trading. The basic motivation behind this concept is that individuals - as well as - institutions (governments, corporations, utilities) significantly impact energy use and carbon emissions through choices made in transportation and home energy use - by some accounts as much as half all energy consumed. The idea is that by government fiat at some starting date, each household would be allotted carbon credits, based upon the number of resident individuals. Then, as people went about their lives, working, playing, traveling, etc. they would expend these credits proportionate to their energy consuming activities. For example, individuals that had lengthy solo commutes, living in large homes in hot or cold climates and taking vacations to far flung spots would expend more credits, while those working at home or retired, living in small houses or apartments and not traveling much, would expend fewer credits. Normal transactions such as gasoline purchases at service stations and utility payments for gas and electric bills, or airline ticket purchases could easily be adapted to monitor energy use and thus carbon emissions.

The key to this approach is not simply monitoring carbon emissions but provision of a market mechanism to encourage savvy energy use. Via an online clearinghouse individuals with excess carbon credits could sell those who might need them; the price of which would be set by supply and demand. The result of putting a price on personal carbon emissions would be presumably more efficient energy use and a contribution to climate stability.

It's an interesting concept that encourages individual - as well as - institutional change in energy policy and usage. Personal carbon trading could occur compatibly, but not in conjunction with, carbon credit trading on markets such as the Chicago Climate Exchange.