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Tax carbon to create jobs.

Tax carbon to create jobs.


Why this is important

A carbon tax to create jobs could be mainstream politics...

At the recent Progress Annual Conference, Phil Collins of The Times, Peter Kellner of YouGov and Mary Riddell of The Daily Telegraph thought that a carbon tax to create jobs could become mainstream politics. The politician on the panel ducked the question.

They should read the article in the latest Fraser Economic Commentary,”The impact of the introduction of a carbon tax for Scotland”. I like this bit:

"Our simulations demonstrate that a carbon tax [ to support employment ] could simultaneously stimulate employment while reducing emissions: the double dividend." and

"Furthermore, in current circumstances, it may be thought desirable to focus the good news by recycling revenues to subsidise employment among the younger age groups who have been most adversely impacted by the recession and its aftermath."

The advantages of a carbon tax to create jobs are:

It creates jobs
-- ideally targetted at the poor and young.

It reduces domestic demand for energy so it
--closes the energy gap
--reduces imports
--increases exports

It redistributes from rich to poor
--because the rich pollute more so would be taxed more
--the extra tax on the poor is less than the fall in other taxes

It will curb pollution.

The economics has always been simple – tax “bads” subsidise “goods”. Now the politics will be possible as events show the public just how bad climate change is becoming.

I was surprised Mary, Peter and Phil thought it could be mainstream.
Pity they aren’t politicians.

See "Carbon tax in the mainstream?"

And "Tax carbon to create jobs for the young."

P.S. Compensate the fuel poor for any extra cost to them? Easy. See

The Daily Telegraph reported "David Cameron, the British Prime Minister, has written to Australian leader Julia Gillard in support of her planned tax on carbon to combat climate change."

Posted May 17, 2012
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