According to a new report from the University of Sheffield, the UK government will need to provide subsidies for low-carbon technologies such as electric vehicles and solar panels to achieve its net-zero target by 2050.
Research shows that encouraging people to adopt low carbon technology (LCT) is benefiting, but it is not sufficient to continue reducing inequality intake among some socioeconomic groups.
Dr. Andrew Burlinson, a former economics student at the University of Sheffield, explained:
“It is therefore important to emphasize that broader inequality in our society could be further exacerbated by limiting the ability of the most disadvantaged groups to invest in technology that can lower their bills and increase resilience to changes in cost of living.”
Low carbon technology is growing, but the arena is unequal
In recent years, households using solar panels for power generation have increased from 3% to 6.5%, adoption of solar panels used for heating has increased from 1.4% to 2.1%, and households using electric or hybrid electric vehicles have increased from 1% to 2.8%, reflecting the increase in adoption of low carbon technologies nationwide.
However, this study found that socioeconomic inequality in LCT adoption has declined over the past decade but still persisted. Factors such as age, education, occupation, ethnicity, and gender all directly and indirectly contribute to the ability of those who invest in them.
The author of the report says more needs to be done to level the arena and help people from more disadvantaged backgrounds adopt technologies that could lower household rates and contribute to UK decarbonisation in the housing and motor vehicle sectors.
“Our analysis revealed that educated, wealthy households are more likely to have adopted low-carbon technologies early, such as solar energy, solar heat, electricity or hybrid transport,” Burlinson said.
“However, with some existing financial subsidies to help people move towards low-carbon technologies now ending, members of society who were unable to become early adopters are left behind in the transition to Net Zero.”
The role of government in inequality intake
The UK government is currently subsidizing the purchase of electric vehicles of the type at the point of sale, but these subsidies are heavily dependent on the socioeconomic status of the consumer.
In addition to this, subsidies for installing domestic solar panels ended in 2019. This means that incentives to help people adopt low-carbon technologies are currently limited and may not function very well for members of society with low socioeconomic status.
The authors state that investigating the existence of socioeconomic inequality in LCTs in the UK has important policy implications for the low-carbon transition and the outcomes of the UK government’s ambitious and legally binding environmental goals.
Consumers need to play a role in adopting low-carbon technologies
There are positive signs that some consumers are increasingly adopting more sustainable ways of living and traveling.
However, the Climate Change Commission reports that in order for the UK to make significant profits when reaching its net zero target, the market share for new electric vehicles must be 100% from 16.5% today, with solar panel installation rates going up five times the current level.
Professor Monica Giulietti of the University of Nottingham said: “In our report and new policy overview, it is important to target groups who may benefit most from cost-cutting technologies, not just at the individual level but also at the community level.
“The measures will depend on addressing policy gaps in the private, rental and social housing sectors.”
Move forward to achieving net zero
In addition to more targeted financial incentives for people with lower socioeconomic status, the report seeks information incentives provided by trusted organizations to establish educational guidance and raise awareness of LCTs, helping those with the most needy navigate recruitment decisions.
The report also argues that new interventions need to be implemented at the community level. Rather than advocating solar technology just for individual households, a move to community establishment has been proposed to reduce the cost burden of adoption and to help level the arena for those who do not personally manage property or transportation.
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