Monday, October 6, 2008

AN EXHAUSTING WAR ON EMISSIONS

In 1991, Norway became one of the first countries in the world to impose a stiff tax on harmful greenhouse gas emissions. Since then, the country's emissions should have dropped; instead, they have risen by 15 percent.

Norway's carbon tax was born in 1990, and even though the Norwegian industries argued that the levy would cripple their ability to compete internationally and threaten jobs, they compiled.

However, the government's plan has backfired. StatoilHydro's overall emissions have more than quadrupled, reaching 8.9 million tons annually. Moreover, the number registered cars rising 27 percent over 10 years. Even though a gallon of gas costs around $10, Norwegians keep paying to drive since two-thirds of them live in the country and work in the city.

It wasn't supposed to be this way, though. By making it more expensive to pollute, carbon taxes should spur companies and individuals to clean up. Norway's sobering experience shows how difficult it is to cut emissions in the real world, says the Journal.

[ah, but it was good for government coffers...]

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