The study suggests that the Coalition's drive to cut greenhouse gases will add £10 million to fuel bills by 2015.
Dr Richard Wellings of the Institute of Economic Affairs has said that the current plans will impose a severe burden on both business and households yet will fail to make a significant difference to the climate.
Critics of the Government's target of cutting carbon emissions by a third by 2020 say it is based on ideology than rational thinking. There is also criticism of the cost involved in trying to switch Britain's energy generation which could be at the expense of business investment in other areas.
