The green tax fallacy
I have written this piece on The Guardian's Commentisfree site on how green taxes fail. I'd be grateful if you would take a look and let me know your thoughts.
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Between David Cameron's announcement of a "holiday tax", Lib Dem commitments to replace direct taxation with environmental levies and the government's doubling of air passenger duty from £5 to £10 in February, there is a tangible and welcome political will to take unpopular steps to curb environmental damage. Yet there seems to be a lack of understanding of the basic principle of environmental taxation: it doesn't work.
That's not to say that environmental taxes can't help the environment or that they can't raise money. It's just that they can't do both; and in the worst cases, they can do harm. To put it simply, if you slap a £200 tax on owning a 4x4, but the owners just pay the levy and get on with their lives, then yes, it has successfully raised some cash, but it has done nothing for the environment. If on the other hand, the levy adds some conspicuous consumption cachet, driving more people to purchase 4x4s, then the levy will raise more in revenue, but cause more 4x4s to be on the streets emitting noxious gases.
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The green tax fallacy | 5 comments (5 topical)
The green tax fallacy | 5 comments (5 topical)


