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> A carbon tax on consumers (incl. businesses) is effective at producing good market behavior regardless of how the tax revenue is spent. In the example I reac
by vonmoltke 7y ago
> A carbon tax on consumers (incl. businesses) is effective at producing good market behavior regardless of how the tax revenue is spent.
In the example I reacted to, a government agency actively worked to inhibit that behavior in order to preserve its revenue. Your point would hold if governments didn't have the power to do things like this.
> Earmarked funds are stuck.
If the revenue is being raised to pay for damage caused by society, those funds should be stuck to that purpose and should rise and fall based on the level of damage being done.
- loeg 7y ago> In the example I reacted to, a government agency actively worked to inhibit that behavior in order to preserve its revenue. Your point would hold if governments didn't have the power to do things like this. A governmental bad actor is basically orthogonal to the idea of a carbon tax. The government could equally try to increase sales of liquor and cigarettes for sin taxes, or go around murdering people for the estate taxes. The UK example is shameful but reflects on that government body rather than the specific tax on petrol.
- thomasz 7y agoThis is very likely an urban myth.