Energy Allowance Attenuates Unwanted Social Consequences of Energy Taxes

By increasing energy taxes, the cost of energy also increases for individuals. This rise is compensated by an "energy allowance" that is paid for by the energy tax. All people residing in the country obtain the energy allowance, from babies to old men. The rate of the allowance is the same for everybody and is calculated as the average extra costs that arise due to the energy tax. Everybody who saves energy gains a financial advantage, while those who consume above average energy are at a disadvantage. This encourages people to save energy in their private domain, too.

The term "energy allowance" hearkens back to a proposal made by the German Association for the Promotion of Solar Power (SFV). "Energy allowance" is understandable only in the context of the proposed "energy taxes".