Stern - tax us to make us happier
The Government should make clear that consumers and taxpayers will pay higher prices and taxes in the coming decade, particularly for energy, flying and driving. All political parties must be honest about it. The Government cannot shirk the costs of action and the Opposition cannot point-score by attacking or denying the extra costs and prices that are involved.
The cost of these steps towards a low-carbon economy will not be small. .. We should probably be allowing for up to £20 billion per year, perhaps more, split between direct price increases and public expenditure during the next few years, which should be a period of intensive investment in making the transition to a low-carbon economy. If half of this comes from public expenditure it would represent about 0.7 per cent of current UK GDP, or 1.5 per cent of public expenditure. These significant sums are manageable. The medium-term fiscal strategy, which will inevitably be tough, must make allowance for these costs.
These investments will have strong returns beyond the radical reduction in climate risks. They will also create the engine of growth of the next few decades: low-carbon technology. The potential markets for electric cars, wind and solar power generation and improved public transport, for example, could be very large....And a low-carbon economy will be very attractive: cleaner, quieter, more energy-secure and more biodiverse.
More taxes on profitable business to build unprofitable pipedreams will make us all richer? That's the point of "investment" isn't it? No sorry, make some of us much richer. I get it now.