That’s the message anyway from the new taxpayer-funded environmental campaign, backed by staunch environmentalists such as Peter Crouch (who takes the train or swims to European matches). The video sees two children murdered for refusing to back the 10:10 environmental campaign:
The video, (despite attempts to pass it off as humour) sums up all that is wrong with some elements of the environmental movement; it is smug, intolerant and hypocritical (that’s not to say though that there are not some genuinely committed and principled environmentalists out there).
I think that we need to tackle climate change. Whilst new technologies and improvements in renewable energy efficiency will undoubtedly help, at the moment the best thing we can do is to reduce energy issue by making carbon-emitting energy more expensive. This can be done through the tax system (as carbon emission are externalities). But this alone is not right, as people will just see it (understandably) as a way to raise extra revenue. This is why green taxes rises need to be balanced with tax cuts in other areas, particularly income tax and National Insurance.
Thus businesses and individuals who don’t emit that much carbon will see their tax bills fall, whilst heavy emitters will see their tax bills rise, which should encourage them to cut their carbon emissions , whether through cutting back for investing in more energy efficient products. Over time then, it should also reduce the tax take of the government, as long as the green taxes are significant enough to impact on behaviour. Chris Huhne has advocated such a policy recently:
The Liberal Democrat minister backed a call by his party’s activists which would see 10 per cent of all Government revenue come from green taxes within five years. Revenue from green taxes is currently forecast to fall from 6.9 per cent of the total to 6.5 per cent over the next five years. Raising the proportion to 10 per cent would require an extra £22billion – an unprecedented shift in the burden of taxation.
The LibDems claimed that raising more in green taxes would allow them to reduce other taxes. But critics last night dismissed it as a cynical move to squeeze more tax out of motorists.
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Filed in: Economics,Economy,Environmentalism