Carbon emissions trading is not working, claim economists; instead a tax based on carbon content in primary fuels is needed
Accountancy Age, 22 Jan 2008
Only a carbon tax will fight climate change; not setting targets for the use of alternative energy sources, British economists have claimed.
Biofuels targets are formed through state support for what is an environmentally and harmful activity, the London-based firm Europe Economics has said.
And the EU's carbon emissions trading scheme is not working because free permits have provided 'covert industrial subsidies' to favoured industries, the FT reported.
Boilers, bicycles and insulation should all receive tax and tariff incentives to reduce their cost to the consumer, while tax on primary fuels should be related to their carbon content, Europe Economics' statement said.
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