Two recent reports provide some encouraging news on the cost of implementing a carbon tax.
A Planet Money report suggests that a carbon tax would cost US residents a little more than a USD 1 per day and stimulate economic growth.
A study of the aviation industry indicates that the cost of carbon offsets would be less than 0.5 percent of airline revenues. The rise in ticket prices would be between USD 2.6 and 15.9, which is less than most current airport taxes.
While the financial costs are encouraging, it is clear that many politicians still don’t have the courage or will to make sensible decisions about sustainability. For example the leader of the right wing opposition party in Australia, where an election will be held this September, has stated that his first priority is to repeal Australia’s carbon tax.