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Energy saving measures could cut peoples energy bills and earn them rewards from certain organisations, according to the RSA.
The think tank has put forward a version of personal carbon budgets which it believes could be in place by 2020.
Researchers concluded that that a system whereby people had limits on the carbon dioxide they could produce and had to trade with others to get the right to emit more would be politically unpopular and unfair.
However, Mr Prescott has suggested that instead of individuals trading their emissions, it could be their employer or their local authority.
The local authority would then provide incentives for people to cut their emissions, while it raised funds by trading their allowances.
Mr Prescott told the Guardian that this could also work because instead of asking individuals to make changes on their own they would be working with others.
He said: "Some people will adopt greener living because they think it's the right thing to do, but the bulk of the population need to feel that they are part of a movement."
The government has set a target of cutting carbon emissions by 80 per cent compared to 1990 levels by 2050.
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