Table Of ContentBeyond the Carbon Tax: Personal Carbon
Trading and British Columbia's Climate Policy
by
Laura Isela Guzmán Flores
B.A., Universidad Tecnológica de México, 1999
Thesis Submitted in Partial Fulfillment
of the Requirements for the Degree of
Master of Arts
IN THE
DEPARTMENT OF GEOGRAPHY
FACULTY OF ENVIRONMENT
Laura I. Guzmán 2014
SIMON FRASER UNIVERSITY
Summer 2014
All rights reserved. However, in accordance with the Copyright Act of
Canada, this work may be reproduced, without authorization, under the
conditions for “Fair Dealing.” Therefore, limited reproduction of this work
for the purposes of private study, research, criticism, review and news
reporting is likely to be in accordance with the law, particularly if cited
appropriately.
Approval
Name: Laura Isela Guzmán Flores
Degree: Master of Arts (Geography)
Title of Thesis: Beyond the Carbon Tax: Personal Carbon Trading and
British Columbia's Climate Policy
Examining Committee:
Chair: Janet Sturgeon
Associate Professor
Alex Clapp
Senior Supervisor
Associate Professor
Mark Jaccard
Supervisor
Professor
School of Resource and Environmental Management
Stephanie Bertels
Internal Examiner
Assistant Professor
Beedie School of Business
Date Defended: August 11th, 2014.
ii
Partial Copyright License
iii
Ethics Statement
iv
Abstract
This thesis proposes a policy framing, communication and implementation model
for personal carbon trading in British Columbia. Personal carbon trading is a scheme
under which all individuals are allocated a number of free carbon allowances forming a
personal carbon budget. Persons whose carbon emissions are lower than their carbon
budgets can sell their surplus to persons who have exceeded theirs. As distributed
allowances are reduced annually, consumers are encouraged to modify their behaviour
and/or adopt technologies in order not to exceed their carbon budget. Personal carbon
trading and carbon taxes are both carbon pricing instruments that, using different policy
framings, aim to reduce greenhouse gas emissions. Comparative experiments in the
United Kingdom tested the hypothesis that, due to economic, social and psychological
drivers, personal carbon trading would have greater potential to deliver emission
reductions than taxation alone.
This thesis explores that hypothesis in the context of British Columbia’s climate
policy. It builds on an analysis of the BC carbon tax, international examples of carbon
pricing instruments, and strategies for behavioural change such as social networking,
loyalty management, apps development and gamification. Interviews were conducted
with experts in financial services, energy efficiency, and the green economy, as well as
with specialists in climate, health and taxation policy. They offered opinions on the
potential of personal carbon trading to increase individuals’ participation in carbon
emission reductions in BC. Their input, together with a review of the theoretical literature
and practical case studies, informed the proposed design of a personal carbon trading
system for BC. The thesis concludes with policy recommendations for increasing
individual engagement, carbon budgeting and collective action by linking personal
carbon trading to social, financial and health incentives.
Keywords: Carbon Pricing; Personal Carbon Trading; Carbon Tax; Behaviour;
Behavioural Change; Gaminification.
v
Dedication and Acknowledgements
I would like to dedicate this thesis to:
In Spanish: Quiero dedicar esta tesis a:
My family for their support, encouragement and unconditional love, mum, I
remember when I told you about this idea some years ago while vacationing at the
beach in Acapulco, it was very gratifying when you understood and liked the idea and
when you said you wanted to be part of this system…maybe one day it will become a
reality! Yadira, my adorable sister and best friend, without your constant support and
help in every aspect of my life, this project would have never been possible. Dad, I hope
you smile when you see your girl defending this thesis, thanks for your inspiration to
always try to make a difference for our world. Please send your blessings from heaven.
In Spanish: Mi familia por su apoyo, motivación y amor incondicional, mami,
recuerdo cuando te platiqué acerca de esta idea hace algunos años cuando
vacacionamos en Acapulco, fue muy gratificante cuando entendiste y te gusto la idea y
cuando dijiste que querías participar en este sistema… ¡tal vez algún día será realidad!
Yadira, mi adorada hermana y mejor amiga, sin tu constante soporte y ayuda en cada
uno de los aspectos de mi vida, este proyecto no hubiera sido posible. Papa, espero
que sonrías cuando veas a tu niña defendiendo su tesis, gracias por la inspiración que
siempre me diste para aportar ideas y crear un mejor entorno global. Manda
bendiciones desde arriba.
Alex, my senior supervisor at SFU, for your incredible patience in giving shape to
my ideas. And in helping me to overcome the challenges of improving my English and
academic writing. I am so much more comfortable and conversant and I have you to
thank for that. Thanks for believing in me and encouraging me to continue every time I
felt it was too difficult.
Mark, my co-supervisor, your deep knowledge, and contributions to the field of
climate change, were a real inspiration. Thank you for challenging and improving my
ideas and accepting me into your research group. It means a lot.
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My dear friends in no particular order: Sergios, Scott S., Scott D., Mel, Jess,
Emma, Anca, Sharon, Martin, Hurrian and Stu, for your encouragement and friendship,
and for believing in me. You instilled the confidence in myself that I needed to create this
project and bring it to fruition. For your help through my first years of school in Canada
when my grammar wasn’t great and understanding of academia was very limited, for
your great ideas, for your example, for your patience and for all the times that you did
not get mad at me when I could not go out and play ;-).
My work colleagues at the Climate Action Secretariat, in particular to Tim and
Jess for your flexibility in allowing me the time to conduct this research and for sharing
your expertise in the areas of public policy and climate change.
And to all the incredible people I had the opportunity to meet and interview during
this research. Thanks for all your ideas, for the time and energy that you put into helping
me to mold this policy proposal. For your constructive criticism and for referring me to
relevant people, jurisdictions and companies. The culmination of these ideas snowballed
into the research contained in this policy paper.
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Table of Contents
Approval .......................................................................................................................... ii
Partial Copyright License ............................................................................................... iii
Ethics Statement ............................................................................................................ iv
Abstract ........................................................................................................................... v
Dedication and Acknowledgements ................................................................................ vi
Table of Contents .......................................................................................................... viii
List of Tables .................................................................................................................. xi
List of Figures................................................................................................................ xii
List of Acronyms ............................................................................................................ xiii
1. Introduction .......................................................................................................... 1
2. Methods................................................................................................................. 9
2.1. Research Design and Procedures ........................................................................ 10
2.2. Interview Sample .................................................................................................. 12
2.3. Data Analysis ....................................................................................................... 13
3. Theoretical Approaches to Carbon Pricing and Behaviour Change:
Economic, Psychological and Social ................................................................ 15
3.1. Economic Approach to Behaviour Change ........................................................... 15
3.1.1. Tragedy of the Commons, Public Goods, Negative Externalities and
Pigouvian Taxes ....................................................................................... 16
3.1.2. Carbon Pricing .......................................................................................... 18
3.1.3. Fixed Carbon Pricing Mechanisms: Carbon Tax ....................................... 19
3.1.4. Emissions Trading Mechanisms ................................................................ 22
3.1.5. Personal Carbon Trading .......................................................................... 24
3.2. Social and Psychological Approaches to Behaviour Change ................................ 31
3.2.1. Social Acceptability ................................................................................... 34
3.2.2. Consumer Behaviour and Commodity Fetishism ....................................... 35
3.2.3. What is and what is not Behavioural Change ............................................ 36
3.2.4. Barriers to Behaviour Change ................................................................... 38
3.3. Design Principles and Strategies for Achieving the Behavioural Change .............. 41
3.3.1. Changing Defaults .................................................................................... 42
3.3.2. Using Social Proofing to Climate Action’s Advantage ................................ 42
3.3.3. Bring the Public into the Conversation ...................................................... 43
3.3.4. Enlist Help from Business and other Players ............................................. 44
4. Practical Approaches to Carbon Pricing and Behaviour Change ................... 45
4.1. Carbon Pricing by around the World ..................................................................... 47
4.1.1. United States of America .......................................................................... 47
4.1.2. European Union ........................................................................................ 53
4.1.3. Australia and South Pacific Ocean Territories ........................................... 57
4.1.4. Other Countries ......................................................................................... 62
4.1.5. Canada ..................................................................................................... 65
viii
4.1.6. Summary of Lessons and Recommendations from Analyzed Carbon
Pricing Systems ........................................................................................ 67
4.2. Carbon Pricing in British Columbia ....................................................................... 69
4.2.1. Results of the BC Carbon Tax ................................................................... 71
4.2.2. Interviewees’ Perception of the BC Carbon Tax ........................................ 73
5. Beyond the Carbon Tax: Personal Carbon Trading for British
Columbia ............................................................................................................. 78
5.1. Personal Carbon Trading: an Option for BC? ....................................................... 79
5.2. How Climate Policies Could Influence Individual Behaviour .................................. 82
5.2.1. Carbon Price Rate .................................................................................... 82
5.2.2. Making Goals Achievable, Fair, Real and Tangible ................................... 83
5.2.3. Finding a Common Ground (Health & Fitness, Economy, Others) ............. 84
5.2.4. Putting the Power and Tools in the Hands of Individuals ........................... 85
5.2.5. About Incentives ....................................................................................... 86
5.2.6. About Intention and Gamification .............................................................. 90
5.2.7. About Social Influence .............................................................................. 91
Social Networks ........................................................................................ 92
5.2.8. About the Use of Technology .................................................................... 93
5.2.9. Other Recommendations .......................................................................... 95
5.3. Assessing the Potential Effectiveness of a Personal Carbon Trading
Approach .............................................................................................................. 96
5.3.1. Potential Benefits of Personal Carbon Trading System for BC .................. 98
5.3.2. Potential Challenges of Personal Carbon Trading ..................................... 98
6. Proposed Design: Policy Recommendation for a Personal Carbon
Trading System in BC ...................................................................................... 101
6.1. Carbon Health and Savings System: Design and Operation ............................... 102
6.1.1. Sectors of the Economy and Allowances Distribution .............................. 103
6.1.2. Determining a Baseline and Scope of Emissions .................................... 105
6.1.3. Distributing Allowances ........................................................................... 106
6.1.4. Carbon Currency and Price ..................................................................... 107
6.1.5. Incentives ................................................................................................ 108
6.1.6. Reserve of Allowances: New Entrants and Visitors ................................. 110
6.1.7. Options to Buy and Sell Carbon Allowances ........................................... 111
6.1.8. Options for Compliance ........................................................................... 111
6.1.9. Voluntary vs. Mandatory ......................................................................... 112
6.1.10. Avoiding Double Regulation .................................................................... 113
6.2. Creating a Coalition: Taking Advantage of What Already Exists ......................... 115
6.2.1. Potential Participants and their Roles in the CHSS Coalition ................... 116
6.3. A Technology Platform for CHSS ....................................................................... 123
6.3.1. Super App as an Integrated Technological Solution ................................ 124
6.3.2. Unique Multi-use Electronic Card: BC Services Card .............................. 128
6.4. Minimum Viable Product and Coalition ............................................................... 129
6.5. Conclusion ......................................................................................................... 131
6.5.1. Further research ..................................................................................... 133
ix
References ................................................................................................................. 135
Appendix A: Sample Interview Guidance ..................................................................... 150
Appendix B: Generic Description of the Roles and Expertise of Interviewees .............. 157
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