Proposal for socially acceptable measures to reduce the emission of greenhouse gases

How the behavior of the population in the private sector can be directed towards reducing greenhouse gas emissions?

by Burkart Schulte

The warming of the earth's atmosphere to be expected as a result of the emission of greenhouse gases can, according to all previous expectations, lead to catastrophic consequences for mankind. These consequences are already generally known and shall not be further explained here. The subject of these considerations here is the question of how the behavior of the population in the private sector can be directed towards reducing greenhouse gas emissions. This should be done as effectively and fairly as possible, and without great administrative effort. To this end, I make the following proposal.

Since there is no inherent right for individuals to emit particularly high levels of greenhouse gases, the measures should affect everyone equally. That is, everyone has the same right to the same emissions. Assuming that current annual emissions need to be reduced significantly, but that this will only be possible over a long period of time, an effective and popularly accepted way to achieve this must be found.

In my opinion, this could be done most effectively with the following proposal.

Assuming we have 80ig million citizens in Germany, then each citizen (possibly only over 16 years old) in Germany receives for the next year an eighty-millionth part of the greenhouse gas emissions currently produced in Germany by private behavior as a credit, I call them here "emission rights". Since different gases lead to different effects, these must be converted into CO2 equivalent.

These emission rights in kg CO2 per month could be allocated by the federal government to individual emission accounts at a bank or savings bank. This could work like a current account and is affordable by every bank and savings bank. In addition, each citizen receives an emissions giro card from which the expected CO2 emissions are deducted for each purchase of CO2-generating substances. In case of consumption of the concerned substances or services, which lead to greenhouse gas emissions, the respective expected amount of greenhouse gases produced is to be deducted from this account. If there are no more funds in the account, the demand could be compensated directly at the cash desk via an emission rights exchange. This emission rights exchange trades in the emission rights that are not needed by their owners. Since consumer behavior and thus the production of greenhouse gases varies greatly from case to case, there will be people who do not use their quota of emission rights ( this will be most people) and other people who need significantly more than they are entitled to through the free emission credits. A person who lives in a small, well-insulated apartment, drives little and possibly never travels by air will not use up his or her emission credits, while others will not. To compensate for this, unneeded emission rights are to be traded on an exchange. The value or price will automatically be determined by supply and demand. Anyone who needs additional quantities can purchase additional emission rights on the exchange and use them to top up their account.

In practice, this will result in people with low emissions, usually the lower income strata, receiving money for their unneeded emission rights from those who need more than they have been allocated. In other words, this method also has the side effect of equalizing income between rich and poor without the intervention of state institutions and thus without any additional administrative burden.

Depending on the total emission rights allocated, this could result in additional income for low-income sections of the population of several thousand € per year and person.

No additional administrative costs are incurred here. The state can reduce the total emission rights every month. The suppliers of materials and services, which produce CO2 emissions, will try very hard to reduce the share that leads to CO2. This applies to all types of CO2 production. Providers of fuels, electricity, air travel, bus travel, home heating, etc. will strive to reduce the portion that produces CO2 more and more. This is a great incentive for technologies to be developed in Germany that will lead to the replacement of fossil energy raw materials.

All basic data, such as total acceptable emissions, CO2 quantities per flight kilometer, etc., can be easily determined in cooperation with appropriate specialist institutions and can be deducted by the trade directly from the consumer's emission credit account at the time of purchase. Certainly there will be objections from the suppliers of these materials regarding the calculation, but these should be easy to clarify.

Since this regulation would be very fair, we do not expect much resistance from the population. Of course, it would be optimal to introduce such a regulation throughout Europe, but since such an agreement would probably take a very long time, Germany should lead the way here. Other countries will surely follow.

Possibilities for practical implementation:

To make the introduction of such a measure as simple as possible, only a few products should be subject to a CO2 limit at first. For example, fuel for private cars and bus travel, oil and gas for heating, electricity and air travel would make sense. If this concept is successful, then other products can be added as needed.

Emission credits could be allocated monthly to a credit account of the recipient in the manner of an annuity payment. This would then be managed in kg of CO2 instead of €. In return, the recipient would receive a kind of giro card. This must be presented when purchasing the corresponding goods and the respective amount of kg CO2 is deducted. If there is no longer enough CO2 in the account, the required amount could be purchased directly on the CO2 credit exchange. For this purpose, only the current daily value of a kg CO2 has to be known. This could be handled by any savings bank.

Conversely, anyone who still has CO2 quantities left over (this will be most people) could sell them at will on the CO2 exchange. For a family of 4 this could mean an additional income of about 200 € per month. This would be a considerable additional income for many in Germany.

The respective value of a kg of CO2 results from supply and demand. It can be regulated at any time by the government by reducing or increasing the allocated quantities.

A price between 20 and 50 ct per kg CO2 seems reasonable. Assuming the current value is 30 ct/kg, then for those who need more than they have in credits, a liter of fuel would become more expensive by about 75 ct. A value that would have to be reached anyway in order to achieve serious savings. For people with long distances to work, one could possibly increase the allowance for travel to work. But most people would not use up their budget and could sell the excess on the stock market.

Certainly, such a proposal would be criticized by those who think they are allowed to produce more CO2 than others. But a justification for these additional emission rights will be difficult, rather one could reintroduce the three-class suffrage.

What reactions can be expected?

The CDU is still in orientation mode, but a massive rejection is not conceivable.
The SPD would have to welcome the project very much, it is extremely social.
The Greens would have to view it very positively, because it is an essential contribution to environmental protection.
The FDP would have to see it positively, it is essentially based on the free market economy without any additional administrative effort
The savings banks and banks will welcome it because it means a new field of activity for them.
Only the public administration could be against it because it would not be involved.

Burkart Schulte

Maulbeerkamp 9b
32425 Minden
Tel.: 0170 5631 537;
Mail.: b.schulte@reset-waste.com

published: Burkart Schulte, 6|2022
Keywords: Pollution Control, EU