Friday, February 7, 2014

Meat tax?

I've written before about pigovian taxes (i.e. carbon taxes).  These are taxes lobbied to reduce consumption of some item.  In the case of carbon taxes, they are designed to reduce fossil fuel consumptions.  Such a reduction would presumably have environmental benefits.  The key to such taxes is that they must be revenue neutral.  In other words, all revenue from them should be channeled back in the form of rebates or tax reductions elsewhere.  A good example would be a reduction in payroll taxes.

But here's a new take on the idea of pigovian taxes.  A meat tax.  The logic is simple - animals produce a lot of methane, and methane gas is a green house gas.  Therefore a policy that reduces methane emissions would be good for the environment.  

Personally I am all for it.  But then again, I don't eat meat.