Timmy ElsewhereJuly 10, 2008 Tim WorstallTimmy Elsewhere2 CommentsSpeccie. Greenie taxes again and a very strange law in Germany. previousRacist Anti-Semite Sues Bloggers!nextSir John Templeton 2 thoughts on “Timmy Elsewhere” Obnoxio The Clown July 10, 2008 at 5:13 pm Timmy, you’ve got the links crossed. ;o) Tim adds: as long as it’s here they’re crossed, not there, that’s fine. Paul Power July 11, 2008 at 8:13 am Tim: A question about Stern’s 11p per litre on petrol. Surely that’s meant to be extra, on top of the pretial price without it, in order to discourage driving ? Tim adds: Yes, well, sorta. Under Stern’s calculations, we need 11 p on a litre of petrol to pay for the CO2 effects, yes. But that does depend upon what is our starting point. Fuel duty needs to pay for the roads, for the other externalities (noise, particularate pollution etc) as well. However, the fuel duty escalator was started in 1993 with hte express intention of raising the price of fuel to cover those CO2 externalities (this was immediately after the original Kyoto discussions, remember). Since then 23p has been added to the fuel duty on a litre. So while Stern is arguing for 11 p to pay for CO2, it is at least arguable that we’re already paying more than that for CO2. There’s an IFS report out this morning which I’ll be mentioning elsewhere today which makes my point for me: petrol is already over taxed in the UK for it’s environmental effects. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.