Time to Reverse Pricing

So, what to do about the fact that household CO2 continues to increase? We posted a statement of the problem yesterday, so today we post a suggestion on what to do about it. We think the government should require that domestic energy prices increase as you consume more energy, not the opposite as happens at present. Look at the charts: the left hand side shows how electricity tariffs work today, the right hand chart shows how they would work under reverse pricing. The average price is the same for the average user (4-5 MWh / year), but the marginal price would be 2 x higher - halving the payback time of a typical energy saving investment.

You can read more in our article on this in The Financial Times, or click here to download a more detailed explanation of the idea. We would welcome your comments!