IC24: Should we have a climate value added tax?
Today, we pick up a topic recommendation from a listener: a carbon value added tax. This tax aims to encourage environmentally friendly consumer behaviors while generating financial flows for sustainable transitions. We unpack arguments for and against this policy, and explore its potential impact on society and the economy, e.g., recent studies have found significant benefits from a meat VAT for human health, societies’ economies, and the climate. Consumer-facing tax can be uncomfortable projects for politicians, and we ask what role that can play.
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