The New York Times is loaded with important environment-related coverage. From an article about the challenges associated with building clean coal power plants to a discussion about the ongoing global debate on biofuels and food scarcity, many issues are covered today. Also of note are articles on controversies surrounding nuclear power and climate change and the results of the latest lawsuit against the Bush administration to release a synthesis report[.pdf] on global warming.
What struck me, however, was an article on recent protests over fuel prices in Europe. Much like the US, there have been political pressures for governments to reduce costs by limiting taxes. French President Nicholas Sarkozy, for example, wants the European Union to impose a cap on the amount of fuel taxes levied by member countries, while other European leaders recognize that reducing the tax burden would not necessarily result in lower prices and would likely increase social costs.
The graphic above is suggestive as it shows different levels of taxation in the EU. What is interesting, however, is the relative low percentage of taxes in the US and Canada. The article indicates that the higher tax burdens in Europe were imposed after the oil shocks of the 1970s and were dramatically successful in encouraging a decrease in consumption. Expansion of public transportation was made possible by the increased resources and consumers chose fuel-efficient cars.
In the US we have not had significant social investment in transportation alternatives. And although petrol prices are resulting in a decrease in vehicle miles traveled, comparing the US to Europe suggests that taxes are still too low in this sector. Higher prices–with the caveat that the funds generated go to public transportation enhancement–could dramatically enhance the viability of multi-modal transport systems in the US.






