This is really rather interesting.
From the Taxpayers´Alliance, a calculator to find out how much you pay in green taxes. They´re trying to make visible the taxes you pay that are embedded in your energy bills etc.
The thing that I find fascinating about this is….
That is a total bill of more than £740 for taxes and regulations
That´s calculating two flights and the use of the most modest Ford Focus. So that´s actually someone with rather below average emissions.
And as we all know the point of such taxes and regulations is to make implicit in the market prices the external costs of the actions. Once this is done then we´ll get the socially optimal amount of said emissions.
Note that this argument comes directly from the Stern Review. OK, let us then take Stern´s number for the social costs of emissions. $80 per tonne.
What are the average emissions of a Brit then? 11 tonnes it appears.
Multiply and divide and the average Brit should be paying £590 a year as Pigou Tax on their emissions.
As we can see above, they´re already paying more than this.
Which means that, by Stern´s logic, we´ve alreadfy solved climate change. We added the appropriate Pigou Tax and will thus have the socially optimal outcome.
(I´m willing to agree that the number are pretty rough and ready. However, for those who would like to argue, I´m much more interested in someone attempting a refutation of the logic rather than the numbers).