Consumers want to see government intervene to make green alternatives cheaper, rather than high carbon options more expensive, research has found.
Setting the scene, PwC mapped out how interim targets mean the UK faces having to increase its rate of decarbonisation by 50% but as it stands, it is not on course to be able to do this by 2030. The reason behind this is costs of green technology. For example, only a quarter (19%) of drivers on average incomes – between £28,000 and £34,000 – are considering switching to an electric vehicle (EV), while just 10% of homeowners or similar incomes are plotting a switch from gas boilers to a heat pump. In both cases, cost is the main reason behind the reluctance to change.
PwC highlighted a margin of almost 2-to-1 among UK voters on wanting the government to intervene and make green alternatives cheaper. For example, 42% want to see taxpayer funds used to reduce costs, compared to 23% in favour of the cost of products with high emissions being raised, while 43% still want to see taxpayer funds used to “level the playing field”, even if the UK is unable to match the scale of subsidies the US is able to offer through the Inflation Reduction Act.
It also uncovered a large majority of rural voters who believe that discounts on energy bills would build greater support for new onshore wind. For example, 71% are supportive of new onshore wind within three miles of their homes, though this figure drops to 56% for new pylons. Over half (56%) of UK adults would be happy with the government using taxpayer money to fund EV battery production in the UK too.
Laura Hinton, PwC Tax Leader, highlighted how government has previously gone on record by acknowledging consumers must “want to jump into going electric, rather than being pushed” and noted that PwC’s research has shown an appetite for a certain level of incentivisation to help them on this path.
Hinton continued: “The public has a clear preference for carrots over sticks as a means to spark this transition. However, while there is notable support for the use of taxpayer funds to do this, it is not universal, and the Government may have to find other levers in addition to encourage behavioural change. It’s a reminder that while tax and incentives have an important role to play in solving societal problems, ensuring public support for measures is far from straightforward.”
