Is It Time for a New Tax on Energy?
By Phil Izzo, Wall Street Journal, February 9, 2007
Economists Say Government Should Foster Alternatives – But Not How Bush Proposes
The government should encourage development of alternatives to fossil fuels, economists said in a WSJ.com survey. But most say the best way to do that isn't in President Bush's energy proposals: a new tax on fossil fuels.
Forty of 47 economists who answered the question said the government should help champion alternative fuels. Economists generally are in favor of free-market solutions, but there are times when you need to intervene," said David Wyss at Standard & Poor's Corp. "We're already in the danger zone" because of the outlook for oil supplies and concerns about climate change, he said.
A majority of the economists said a tax on fossil fuels would be the most economically sound way to encourage alternatives. ...
This may be the popular view of economists, but would the public like it. This approach is used in Brazil and parts of Europe. What do you think?