Green taxes should play a crucial role in tackling Europe’s spiralling deficits, according to a major new report backed by some of the continent’s political heavyweights. The 160-page report from NGOs the European Climate Foundation and Green Budget Europe and consultancy Vivid Economics argues that carbon and energy taxes present an effective means of tackling greenhouse gas emissions and raising much-needed revenue, while having less of a negative impact on growth than conventional fiscal measure such as income taxes and VAT.” (Source: Business Green)

Interesting report sponsored by the European Climate Foundation.

But what will the new revenues be spent on? Saving the banks? The report also seems to skip a bit too easily over the challenge of the regressive nature of such taxes (impact on poor households).

Read the executive summary and the full report “Carbon taxation and fiscal consolidation” (May 2012)