Won’t pay for carbon? Don’t fly then. Or, why Flybe will be history
Yes, that’s the point of a carbon tax, a Pigou Tax. To insist that the consumer pays the full cost of their consumption choices.
The suggested mechanism for saving Flybe is for it to be permitted to waive payments of air passenger duty owed to the government. Air passenger duty is the tax charged, in effect, to compensate for the externalities of flying and varies according to the flight taken. It is a very basic carbon levy.
It’s not a carbon levy, it’s a Pigou Tax.
Deferring or cancelling this payment does, of course, make no sense. This duty has already been collected by Flybe from its customers. It merely acts as an agent in collecting this sum.
Yes, quite so. It has already performed its function therefore. Which is to change the prices consumers pay in order that they face the full costs of their consumption.
What happens to that revenue is of secondary – possibly tertiary – importance. The job is done by getting costs into consumption decisions.
And now the stupidity which is a necessary component of any Murphesque:
So is Flybe over? Maybe not. I think carbon insolvency needs to be planned: transitions are required. A temporary stay of execution whilst alternatives are prepared may be appropriate. But, the key word is temporary. The carbon must be eliminated. If Flybe customers won’t pay the price of their pollution then their flights must end. All I would permit is an orderly winding up rather than an overnight cessation. But the game is over, come what may. This type of travel cannot survive in a net zero carbon environment.
But you’ve just told us that the FlyBe customers have paid the tax.