Most people agree that the use of fossil fuels should be reduced to some extent. However, imposing taxes is a controversial tactic which appears to have a number of contradictory effects. We will consider both
sides of the discussion in this essay.
On the one hand, those who support taxation of fossil fuels promote the idea that higher prices will lead to lower consumption and thus lower emissions. They point to evidence from countries such as Sweden where this appears to be the case, and urge other nations to follow suit. Furthermore, proponents of fuel taxes claim that the funds raised can then be used to subsidise renewable energy projects such as solar and localized biofuel reactors. To the supporters of the idea, these benefits are convincing.
However, opponents of fuel tax are able to cite evidence from other countries (including France and Italy) where higher tax has apparently not reduced demand for such fuels. In these cases, the effect has been to force people to pay more for the same volume of energy, which appears to penalise those who can least afford it. Moreover, critics of fuel tax also highlight the difficulty in governments promising renewable schemes
without interfering in the entire energy market. If the state was to control the entire market for fuels, they say, this would force suppliers to leave the market, thus reducing competition and efficiency. This argument also appears to be quite powerful.
Overall, I would tend to side with the opponents of fuel taxation. It seems to be unreasonable to force vulnerable consumers to pay more for a commodity which is essential to them, without a real infrastructure for renewable energy being in place. It would be more logical to improve availability of renewables first, which
would allow consumers to make a genuine choice.
Most
people
agree
that the
use
of fossil
fuels
should be
reduced
to
some
extent.
However
, imposing
taxes
is a controversial tactic which
appears
to have a number of contradictory effects. We will consider both
sides of the discussion in this essay.
On the one hand, those who support taxation of fossil
fuels
promote the
idea
that higher prices will lead to lower consumption and
thus
lower emissions. They point to evidence from countries such as Sweden where this
appears
to be the case, and urge other nations to follow suit.
Furthermore
, proponents of
fuel
taxes
claim that the funds raised can then be
used
to
subsidise
renewable
energy
projects such as solar and localized biofuel reactors. To the supporters of the
idea
, these benefits are convincing.
However
, opponents of
fuel
tax
are able to cite evidence from other countries (including France and Italy) where higher
tax
has
apparently
not
reduced
demand for such
fuels
. In these cases, the effect has been to force
people
to pay more for the same volume of
energy
, which
appears
to
penalise
those who can least afford it.
Moreover
, critics of
fuel
tax
also
highlight the difficulty in
governments
promising
renewable
schemes
without interfering in the entire
energy
market. If the state was to control the entire market for
fuels
, they say, this would force suppliers to
leave
the market,
thus
reducing competition and efficiency. This argument
also
appears
to be quite powerful.
Overall
, I would tend to side with the opponents of
fuel
taxation. It seems to be unreasonable to force vulnerable consumers to pay more for a commodity which is essential to them, without a real infrastructure for
renewable
energy
being in place. It would be more logical to
improve
availability of
renewables
first
, which
would
allow
consumers to
make
a genuine choice.