The EU today announced it is thinking of clamping down on car makers for the carbon emissions coming from the cars they make.
Although I commend the continued focus on carbon emission contributions to climate change, I wonder if we would all not be better served by creating market incentives at the consumer level. Say for example that any car producing more than X emissions would cost a consumer X$ in extra charges at purchase time as a “climate tax”. What better way to help sway consumers towards more carbon efficient cars?
Regulating means putting in serious infrastructure to monitor. Using the market to regulate is far more cost efficient and more effective in the long term.
Imagine also the effect on the carbon credit market, where perhaps instead of paying the tax, consumers could buy carbon credits. It has for effect to sensitive individuals where governments and industry are alone today. Shortly thereafter, consumers would rightfully ask for their share of carbon credits for any carbon saving activity recorded. If others can credit for this, why not us?
Sass