The French Government’s plans for introducing a carbon tax have been dropped, in the wake of regional electoral defeats for Sarkozy and claims that it would harm competitiveness. If carbon trading is hard, carbon taxes appear to be no easier, politically.
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One response to “Taxing times”
An alternative to having EU countries introduce carbon taxes would be to reform the EU ETS to have a price floor. It would have a very similar economic effect, but would be harmonised among different countries and have less transaction costs.