Carbon tax to cost households average €247

The introduction of carbon taxes, as promised in next year's Budget, would cost the average Irish household €247 per year, according…

The introduction of carbon taxes, as promised in next year's Budget, would cost the average Irish household €247 per year, according to the Economic and Social Research Institute (ESRI).

Its findings reveal that a carbon tax would not only reduce emissions but also provide increased revenue for social housing and health funds for low-income families.

The ESRI study is looking at the macroeconomic effects of taxing carbon, the largest source of Ireland's soaring greenhouse gas emissions, generated by the combustion of fossil fuels such as peat, coal and oil (including petrol and diesel).

The study, by Prof John FitzGerald and Ms Sue Scott, is among some 40 environmental research projects being presented at a two-day conference in Dublin, "Pathways to a Sustainable Future", hosted by the Environmental Protection Agency (EPA).

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Ms Scott is using the 1999-2000 Household Budget Survey to look at how a carbon tax would affect different households. "We expect that the average household would have to pay up to €247 per year This is based on €20 per tonne of carbon produced."

The tax would raise over €860 million a year, according to the ESRI's estimate.

However, Ms Scott stressed that compensation would have to be paid to those on low incomes who spend a larger proportion of their family budgets on fuel for heating.

Among the other projects being presented at the conference is an initiative to provide a community-based car-pooling co-ordination centre serving Carlow, Kilkenny and Tipperary.

"Ring-a-Link" will use an advanced computer system to enable employees working for companies in the three counties to phone, email or text requests for a car share on their route to work, its manager, Ms Mary Merrick, told the EPA conference.

"A software package will collate all the information - where the person is located, where they want to go, what time they wish to travel and the time they need to be at the location and then match this with a vehicle travelling in the same direction", she said.