For every major problem, there is usually a solution that is simple, easy, and wrong. Occasionally, however, a solution will be simple and effective. Ireland, over the last three years, has imposed a “carbon tax.” As a way to reduce the deficit and improve the environment, Ireland imposes a tax on households and businesses for the environmental damage they cause.
If you buy a new car in Ireland, you pay a registration fee that rises in proportion to the vehicle’s emissions. Irelands’s emissions have dropped more than 15% since 2008. Ireland’s former energy minister said, “We just set up a price signal that raised significant revenue and changed behavior.”
Amazing. Will the U.S. follow Ireland’s lead? Republicans in Congress have pledged to block any proposals for a carbon tax.
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