Green policies — keep it simple, raise taxes on fossil fuels

Green politics need to make much further headway across the world — and quickly.

Don’t over-think the situation at this stage. The most obvious way to green the world economy is to use the price mechanism.

Increase the cost of fossil fuels by raising taxes sharply and consistently. As carbon-based fuels become more expensive, alternative energy sources will become more favourable in price terms.

Fossil fuels are already losing ground and this needs to be given a further big shove.

As price differentials widen, the creative power of markets will then become clear as a profit motive drives innovation.

The path towards greening the world economy is still unclear, there will inevitably be further developments and breakthroughs in technology which are not factored in as yet.

Raise taxes on fossil fuels and let innovation shine through.

You can be sure that China won’t keep building coal-fired power stations if the economics are against it.

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