Examining the impact of carbon price changes under a personalised carbon trading scheme for transport

The research presented in this paper investigates the welfare effects of a Personal Carbon Trading Scheme (PCTS). A consumer surplus analysis is used to determine the welfare loss to individuals who undertake travel-to-work trips in the Dublin and the Western Border Region (WBR) of Ireland. Three CO2 price scenarios are analysed: a low, medium and high carbon price. These results are compared at an aggregate level for each electoral division to existing measures of deprivation derived from the Census 2006 to determine if electoral wards designated as relatively deprived also incur the largest welfare losses. The results are also compared to the density of population in each electoral division to investigate any link between density levels and welfare changes, particularly in rural regions.