Tax on carbon fuels 'needed to fight climate change'
Carbon emissions trading is not working, claim economists; instead a tax based on carbon content in primary fuels is needed
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.
Further reading:
Wind industry confident over EU
targets
MPs call for biofuel
moratorium