ESRI says that although households would pay more in carbon tax they could get it back in welfare increases or tax credits

Households would pay significantly higher energy prices if carbon tax was increased but would be better off in the long term, according to research.

ESRI, the state-funded economic think tank, also found that some sectors, including agriculture, would be marginally better off by 2030 despite the higher tax. “A carbon tax should incentivise households to decarbonise without making them worse off. One way of achieving this is to recycle the revenues from the carbon tax back to households,” ESRI said.

The research examined a “fee-plus- dividend” model, as championed by Eamon Ryan, the Green party leader. This would progressively raise tax on fuel but the revenue would go back to the public at the end of each year as a cheque or via welfare increases