Now is the time for Europe to raise taxes on hydrocarbons
Dr Daniel Hardy (St. Antony’s College, University of Oxford) has published an opinion piece in which he discusses the desirability and feasibility of raising carbon taxes following the collapse in oil and other energy prices caused by the COVID-19 crisis.
Daniel suggests that there is a political opportunity to introduce higher duties on hydrocarbons – a necessary component of any strategy to decarbonize the economy – while leaving retail prices unchanged, and generating revenue at a time of ballooning fiscal deficits.
It would be best if many countries acted in concert, but individual countries have reason enough to maintain incentives for integrating renewable energy.
Daniel C. Hardy is an Academic Visitor on the European Political Economy Project, based at the European Studies Centre, St Antony’s College, University of Oxford.
Sunset photo by Zbynek Burival on Unsplash
