by Outcast_Searcher » Wed 09 Sep 2009, 12:33:24
$this->bbcode_second_pass_quote('dsula', ' ')You want policis in place that do REWARD good beahviour (eg. you save energy, you make money) vs. punish bad behviour. Much better from a psychological point of view. And you also want policies to allow for individualism as individualsim and freedom is the source of inovation and necessary change.
However again, the best and simplest policy is tax it at the source, not at the tail.
I agree with your reward principle. So, here's an alternative idea:
If you tax it at the source, it just gets passed along to the users at the tail. Since energy usage demand is highly inelastic, you may not get as much change as you'd like - you WILL get much dislocation (pain),
How about taxing it at the tail, but offering some kind of large offsetting tax credit to each taxpayer?
For example, add a $5 per gallan gasoline tax. Have an automatic, say $2500 per taxpayer tax credit to offset, no strings attached. You've just created a very significant incentive to use less gasoline.
Examples:
1). The guy who bikes, who uses an electric car, or who only consumes 200 gallons a year by driving a SULEV hybrid car gets a big tax credit.
2). The lady driving the giant Yukon filled with kiddies many miles a day will pay incredibly high gasoline taxes.
3). While bus fare should rise, the poor, who take the bus instead of driving a car they can't afford get a big tax credit to more than offset that.
I'm sure this specific off-the-top example will have all sorts of problems and objections -- but I think the PRINCIPLE of a large tax on energy to disincent massive consumption to the end user, OFFSET by a tax credit to strongly reward efficient use would do a LOT to change consumption habits over several years.
I can't see our politicians having the guts to ever do this, by the way...