Micro tax 'would promote green innovation'

Monday, May 17th 2010

Placing a "micro tax" on petrol might have some positive results, because it could promote innovation in green transport.

A new report on climate change - the Hartwell Paper - was recently released by academics from around the world.

Co-author Professor Gywn Prins stated this type of levy is already used in countries such as France.

A small amount of the cost of each litre of petrol is given to the French institute for oil studies, he explained.

"The point of a very low hypothecated tax is that you can apply in to anything," Mr Prins added.

While these levies do not change behaviour, they can create a decent amount of money when they are used on everything.

Mr Prins worked alongside 13 other authors, who agreed there needs to be a "radical change of approach" in terms of climate change.

The low hypothecated carbon tax could be implemented alongside other energy efficiency initiatives, the paper outlined.