Tuesday, November 27, 2007

Reasons for a carbon tax

From CBC News:

More than 25 years of improvements in the energy efficiency of cars have failed to cut energy consumption because Americans switched to bigger vehicles, bought more of them, and drove them farther than ever, a new report suggests.

The study — by CIBC World Markets chief economist Jeff Rubin — calls it an efficiency paradox, because consumers have, in effect, used the savings from the efficiency gains and spent them on more and bigger energy-guzzling vehicles.

--This study makes perfect economic sense, you aren't going to see a reduction in energy consumption unless you give people a reason to reduce energy consumption. The study focuses on driving habits of Americans, but the only reason Canadians use less gasoline is because it's taxed higher. A.K.A. it's time for a carbon tax (big). Get the full version here.

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