Arun Advani

Arun Advani

PhD Scholar


MRes Economics (Distinction), University College London, 2011
MPhil Economics (Distinction), University of Cambridge, 2010
BA Economics (1st Class), University of Cambridge, 2009

Arun is a PhD Scholar in the consumption and saving sector, where his research interests are in tax compliance, as part of TARC. Previously his work focused on environmental taxation and energy use.
Arun is also undertaking research towards a PhD in Economics at University College London. From 2011-13 he was an Associate Fellow of King's College, Cambridge, where he taught microeconomics.


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Cheaper, greener and more efficient: rationalising UK carbon prices

| Journal Articles

Current UK energy use policies, which primarily aim to reduce carbon emissions, provide abatement incentives that vary by user and fuel, creating inefficiency. Distributional concerns are often given as a justification for the lower carbon price faced by households, but there is little rationale for carbon prices associated with the use of gas to be lower than those for electricity. We consider reforms that raise carbon prices faced by households and reduce the variation in carbon prices across gas and electricity use, improving the efficiency of emissions reduction. We show that the revenue raised from these reforms can be recycled in a way that ameliorates some of the distributional concerns. Whilst such recycling is not able to protect all poorer households, existing policy also makes distributional trade-offs, but does so in an opaque and inefficient way.

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