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The Political Economy of Deep Decarbonization: Tradable Energy Quotas for Energy Descent Futures

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  • Samuel Alexander

    (Melbourne Sustainable Society Institute, University of Melbourne, Melbourne 3010, Australia)

  • Joshua Floyd

    (Melbourne Sustainable Society Institute, University of Melbourne, Melbourne 3010, Australia)

Abstract

This paper reviews and analyses a decarbonization policy called the Tradable Energy Quotas (TEQs) system developed by David Fleming. The TEQs system involves rationing fossil fuel energy use for a nation on the basis of either a contracting carbon emission budget or scarce fuel availability, or both simultaneously, distributing budgets equitably amongst energy-users. Entitlements can be traded to incentivize demand reduction and to maximize efficient use of the limited entitlements. We situate this analysis in the context of Joseph Tainter’s theory about the development and collapse of complex societies. Tainter argues that societies become more socio-politically and technologically ‘complex’ as they solve the problems they face and that such complexification drives increased energy use. For a society to sustain itself, therefore, it must secure the energy needed to solve the range of societal problems that emerge. However, what if, as a result of deep decarbonization, there is less energy available in the future not more? We argue that TEQs offers a practical means of managing energy descent futures. The policy can facilitate controlled reduction of socio-political complexity via processes of ‘voluntary simplification’ (the result being ‘degrowth’ or controlled contraction at the scale of the physical economy).

Suggested Citation

  • Samuel Alexander & Joshua Floyd, 2020. "The Political Economy of Deep Decarbonization: Tradable Energy Quotas for Energy Descent Futures," Energies, MDPI, vol. 13(17), pages 1-18, August.
  • Handle: RePEc:gam:jeners:v:13:y:2020:i:17:p:4304-:d:401241
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    References listed on IDEAS

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    Cited by:

    1. Damon Honnery & Patrick Moriarty, 2022. "Deep Reductions in Energy Use: Hobson’s Choice in Climate’s Last-Chance Saloon," Energies, MDPI, vol. 16(1), pages 1-4, December.
    2. Patrick Moriarty & Damon Honnery, 2020. "Feasibility of a 100% Global Renewable Energy System," Energies, MDPI, vol. 13(21), pages 1-16, October.
    3. Diamantis Koutsandreas & Evangelos Spiliotis & Haris Doukas & John Psarras, 2021. "What Is the Macroeconomic Impact of Higher Decarbonization Speeds? The Case of Greece," Energies, MDPI, vol. 14(8), pages 1-19, April.

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