Tourism

protest bannerGreen taxes

Governments frequently tax consumer goods and services as way of raising money for health, education and defense. Green taxes are financial charges that a government adds to the cost of polluting activities or services, such as air flights or car travel. Many world governments, concerned with climate change, are now investigating the possibility of introducing green taxes. These are are dditional levies that will serve to:

  • raise money that can be used to slow the rate of climate change (e.g. car taxes could be used to build more sustainable forms of public transport that are less polluting per capita)
  • slow down consumption and encourage re-use and re-cycling

However, this is a controversial issue. Will the taxes raised definitely be re-invested in sustainable technologies (and not just be used as an additional source of revenue for existing health and welfare services)? And will governments genuinely set out on a course of action that could reduce levels of consumption of goods and services (given that this could impact adversely upon national economic growth)?

Will climate change result in British consumers paying "green taxes"?

Can the needs of the economy and the needs of the environment ever truly be reconciled with one another in sustainable ways? At the same time as the UK government is planning to allow an unchecked expansion of the aviation industry in the UK (with new runways generating more wealth and jobs), it is also desperately trying to raise awareness of the dangers of increased carbon emissions (even sending a copy of the Al Gore film "An Inconvenient Truth" to every school!).

Are green taxes really going to work in societies whose economic growth depends upon ever-higher levels of consumption?

Consumption is at the heart of post-industrial economics. Industrial economies were based on the production of manufactured goods (such as Sheffield's manufacture of steel and cutlery). Whereas post-industrial societies have economies that rely far more on services such as retailing and tourism. These activities involves moving ever-increasing numbers of products around the globe for sale in shopping malls and retail parks, as well as encouraging people to travel to and from far-off destinations.

For instance, Liverpool's "City of Culture" initiative (2008) hopes to boost the city's economy by attracting visitors from all over the world, all well as by building a giant new shopping complex in Paradise Street. Green taxes in the future could harm both sets of activities.

Other problems with the implementation of green taxes could include:

  • Unpopularity with voters (nearly 2m Britons recently signed a petition objecting to government "road charging" proposals)
  • They may have a weakened effect if people are prepared to pay the extra cost and do not consume less as a result

Student Practice Question:

Examine how urban environments can be made more sustainable

A typical answer to this question will look at a range of environmentally-friendly schemes and policies, one of which could be green taxes or congestion / road charging. However, a good answer might additionally ask if long-term economic growth is actually compatible with stricter environmental controls such as green taxes - and if not, does the settlement actually have a "sustainable" future?