To tax or not to tax? Will imposing a carbon tax have enough advantages to not disgruntle the British population?

• A British economic-modeling firm (Cambridge Econometrics) evaluated the effect a carbon tax would have on the country’s economy and environment.
• The results were mixed. Experts found the tax would boost the overall economy by increasing gas-fired power stations and decreasing expensive wind power operations. However, Britain depends on gas already, and encouraging its use would only speed up the country’s dwindling supply.
• A carbon tax would also be much simpler than then hodgepodge of environmental laws and tax breaks already in place. The tax would regulate the price of carbon so that if people pollute, they pay for it, encouraging greener technologies.

Facts & Figures

• With a carbon tax, Britain would raise an extra 11 billion pounds by 2015.
• Average fuel bills would also grow by 0.5 % by 2020.