A Better Organization for Our Country

Project: Environmental Levies

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OzPolitic.com gives multi-faceted attention to what they call a green tax shift. Addressed are the aspects of economics, limitations of regulation, media confusion, and resistance on the part of political leaders.

Project Objectives

- To broaden awareness of the environmental levies approach
- To heighten acceptance of this approach based on its merits
- To make contributions to the understanding, development and implementation of this approach.

Project Justification

In comparison with other economic systems, capitalism possesses superior adaptive capabilities. Their full and systematic utilization would be an effective way of countering every aspect of the degradation of the natural environment.

And we contend that environmental levies, as a decentralized way of creating and maintaining economic incentives, is the only realistic solution for countering the threats associated with climate change and global warming.

Proposition 14.3
A system of environmental levies is to be the primary means by which government guides all the participants of the economy in addressing environmental threats. The levies on products and outputs are to be calculated on the basis of environmental costs by an agency independent of government.

This is how the environmental levies approach is put forth in A Better Organization. At the conceptual level, it is described in Chapter 12. Specifics are presented in Chapter 14.

Graduality is a requirement which is crucial for making the levies less disruptive, on the one hand, and implementable in a short order, on the other.

In particular, the introduction of a levy is to be announced in advance. Its initial level is to be much lower than the levy's estimate. The levy is to be increased in incremental steps, so that all the economy participants are given time to adapt.

Such a process would facilitate the gradual adaptation and, therefore, spare our country of severe economic shocks. It has to be recognized, nevertheless, that a substantial eventual restructuring of the economy is inevitable.

With such a process, it is feasible to have the system in place and running in a matter of months, rather than years or decades.

It is worth noting that the system itself would be functioning in an adaptive mode.

Page started on May 31, 2007, last updated on December 3, 2007