8th April 2024
Carbon Tax -1
“A carbon tax is a tax levied on the carbon emissions from producing goods and services. Carbon taxes are intended to make visible the hidden social costs of carbon emissions. They are designed to reduce greenhouse gas emissions by essentially increasing the price of fossil fuels. This both decreases demand for goods and services that produce high emissions and incentivises making them less carbon-intensive.” https://en.wikipedia.org/wiki/Carbon_tax
Many definitions of a carbon tax say it is designed to address the social cost of carbon emissions which is interesting. There is certainly a social cost in terms of threats to the stability of social systems, but the carbon tax (surely?) should aim to tackled those threats -physical ones arising from adverse weather and rising sea levels, and economic ones rising from the adverse affects of climate change on growing crops, ensuring a healthy work force and protecting commercial buildings from damage.
The aim of a carbon tax should be to reduce and ultimately curtail the use of fossil fuels, whilst at the same time encouraging the development and use of alternative renewable energy. There will be a transition period as rapid changes cannot be made overnight.
For example, to make transport systems free of fossil fuels, needs the development and delivery of sufficient electric vehicles, associated charging points and a proportionate increase in renewable energy supplies. It might also need to develop a wider spread, more frequent and affordable public transport system as a means of making best use of the resources needed to make both vehicles and batteries. A carbon tax would be too blunt an instrument to achieve all these changes unless supported by legislation outlining the changes needed, and by grants and subsides to enable smaller and more vulnerable businesses and customers to make the transition.
The Green Tau 