Environmental taxes overblown
Taxes from environmentally bad behaviour may not raise as much revenue as previously expected.
Great expectations of the amount of revenue that could be raised from green
taxes have come crashing down, according to a report carried out by the
Institute of Fiscal Studies.
Green taxes are likely to only raise 1% of GDP, the study for the Mirrlees
review has found. The review is skeptical that environmental taxes will bring
any benefits to the economy, the Financial Times reported.
Robert Chote, director of the IFS, said: ‘Enthusiasts often overestimate the
available revenues and claim a ‘double dividend’ of improved environmental and
economic performance’.
Among the various other tax in aid of the environment are higher fuel taxes
and carbon trading, which limits the amount of C02 industries can emit into the
environment.
Carbon Trading could make as much as £13bn based on the recommended £80 per
tonne of C02 by the stern review. Currently the price is set in Europe as £15
per tonne but the European Union want that to double before the US and other
nations are due to join in 2020.
Further reading:
Internal
audit and the environment: how green is your audit?
