UK-wide carbon tax would have 'little impact' on consumers, study finds

BusinessGreen: LSE study predicts modest carbon tax of 20 a tonne would increase consumer prices by just 0.9%, while driving emission cuts

A "modest" uniform carbon tax of 20 a tonne would have a negligible impact on consumer prices, according to a new study that attempts to make the case for wider adoption of carbon pricing policies.

The study from the Grantham Research Institute on Climate Change and the Environment and the ESRC Centre for Climate Change Economics and Policy at London School of Economics and Political Science argues that applying the tax to all fuels would increase UK consumer prices by up to just 0.9 per cent, assuming all costs were passed along supply chains fully.