The carbon floor price introduced in Budget 2011 threatens to increase energy prices in Britain while reducing them elsewhere in Europe.
Combined with other measures that increase prices such as renewable energy subsidies it will increase bills for domestic customers.But it will also create particular problems for energy intensive industries. Those industries are going to see their energy costs rise while those costs fall for their competitors.
Some companies have made it clear that threatens billions in new investment, or even the ability to keep major plants open. This study attempts to gauge the effectiveness of the carbon floor price, and assess its economic consequences.