Tax as an environmental weapon


Although I don’t like average, a less than average can come to an effect in minimising our energy consumption via a tax system. An example: in average the Danish population uses 125 liters of water a day, but can easily go down to 100 liters by using water saving installations. To have an effect the environmental taxation will have to start below the average minimum consumption, let us say 80 liters. Consumption above will be harder taxed. First 10% by additional 10% taxes next 10% by 20% and so forth. This will make the engagement to meet the key point that much stronger or just slightly above.

The same system can be applied to other daily and energy consumption goods like electricity, fossil fuel, heat etc. The question is just how to manage the taxation.


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