SaveClimate.Earth e.V.'s post

CO2 tax with rebate is not much more than a "left pocket right pocket" self-deception and rather a well-designed marketing sleight of hand.
Politicians are faced with a major challenge. Legislators must adhere to agreed emission reduction targets, but are dependent on the mass approval of the population for implementation. After all, if the people cannot be brought along on this path, poll ratings will plummet and re-election is at risk (see the recent debacle with the Heating Act). The chosen path: the aim is to reduce emissions by trying to make the consumption of fossil fuels less attractive by increasing the CO2 tax. In order to avoid another rejection similar to that of the GEG, an attempt is being made to make the price increases more palatable to citizens through a reimbursement system called "climate money".
However, this maneuver is nothing more than a well-designed marketing sleight of hand, because:
the current system lacks climate-friendly consumption alternatives on a realistic scale. So although people are reluctant to pay the surcharge, they do pay it - out of necessity.
There is also the effect of price elasticity. Price increases do not lead to a reduction in consumption to the same extent. This applies in particular to essentials such as mobility and heating. After all, we all still have to drive to work and nobody wants to freeze in their living room. If at all, the emission savings from such measures are in the single-digit percentage range and are therefore a long way from the emissions reduction target.
In addition, low-income earners are particularly hard hit by this (and any other) price increase measure. Lower-income households are disproportionately burdened by a CO2 tax, as their potential for savings by cutting back and doing without is particularly low.
Furthermore, this "solution" completely ignores the so-called "rebound effect". Emissions saved in one place through restriction and renunciation (or also through more efficient technologies) are spent (not least due to the rebate) on consumption elsewhere - for example on an additional vacation.
**CO2 tax with rebate is therefore little more than a "left pocket right pocket" self-deception**
The simplified equation: money = emissions gets to the heart of the matter. We cannot solve the global climate crisis within the existing monetary system. Achieving the targeted and urgently needed reduction in emissions is therefore more than questionable.

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  • dickson mutai

    15 w

    Is it truly an effective solution or just a self-deception within the existing monetary system?

    • George Kariuki

      15 w

      A combination of policy measures, technological advancements, and societal changes will be necessary to achieve the necessary emission reductions.

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