Environmental analysis: Micro-tax could save the environment

A micro-tax on petrol could fund improvements in energy efficiency, environmental experts have said.

In the Hartwell Paper, released last week, a group of 14 academics argued that radical change is required to reduce the amount of carbon used.

Successful improvements in energy efficiency and decarbonisation can be achieved by introducing a low carbon tax, according to the authors of the paper including Gwyn Prins, professor at the London School of Economics & Political Science (LSE).

She said: "It is simply a small unnoticed tax which doesn't change behaviour but when it's on everything collects quite a bit of money."

The paper states that this tax will enable the expansion of energy access, energy security and reduce the cost of energy, which will help achieve decarbonisation goals.

A few days after the paper's release, new transport secretary Philip Hammond confirmed the coalition government's introduction of a 'fuel price stabiliser', which will involve a rise in fuel duties if the price of petrol and diesel falls.

Posted by Claire Manning