9th April 2024
Carbon Tax – 2
Carbon taxes are often criticised for impacting most on the poorest or the most vulnerable. People and businesses with wealth can more easily buy their way out of the situation either by absorbing the tax or through buying alternative products and services that avoid the tax. For example a richer person can more readily buy a new efficient electric car, where someone with less wealth may have to pay more on petrol to continue using their older car. A richer person can more readily afford a heat pump (powered by renewable electricity) and home insulation, whilst a less wealthy person – or someone who is rented accommodation- will have to pay more for running an existing gas boiler in an un-insulated home.
Such issues need to be addressed. Improving public transport, implementing scrappage schemes for old cars and boilers, offering grants for insulation and heat pump installations – including for rented accommodation – are key. At the same time introducing a carbon tax incrementally over time to ensure users can plan and adapt, is also important.
Given the urgency of the need to reduce greenhouse gas emissions to address the climate crisis, maintaining the status quo is not a good option. It is certainly not a good option for the poorest or most vulnerable as they are the ones who are – and will be – most affected by the impacts of the crisis.
The Green Tau 