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Green consumer taxes can work
published : 30 Apr 2021 at 04:00 Energy generating wind turbines are seen on a wind farm in the San Gorgonio Pass area near Palm Springs, California. AFP
Many governments, aiming to foster a green and inclusive post-pandemic recovery, have embraced the slogan Build Back Better . So far, policymakers have focused on increasing public spending in ways that address climate and environmental challenges while also creating jobs. But fiscal conservatives worry that the rising tide of red ink will drown economies in debt and lead to a financial-market backlash.
With the pandemic not yet over, politicians are unsurprisingly loath to dampen spirits further with talk of tax increases. But the socially sustainable shift that they profess to seek will require revenue reforms.