True Cost Pricing
= Under a True Cost Economy the cleanest (ecologically) is the cheapest.
More at http://www.conservationeconomy.net/true_cost_pricing.html
Description
"The tax code and government subsidies support social and ecological practices that are disadvantageous to the health of the environment and society. The prices of goods and services do not currently reflect the actual social and ecological costs and benefits of their production. This provides market signals that are greatly skewed against a conservation economy, slowing its diffusion and adoption.
True Cost Pricing makes it possible to enhance Natural Capital, Social Capital, and Economic Capital by reducing existing taxes on good things like personal income and replacing them with new taxes and fees on bad things like pollution, natural resource consumption, unjust working conditions, and so on. Such a tax shift is revenue-neutral. It does not increase the overall tax burden — it will likely reduce it substantially over time — but simply reallocates it to create efficient markets. By using carefully calculated taxes to incorporate social and ecological costs and benefits into prices, it is possible to create a level playing field." (http://www.conservationeconomy.net/true_cost_pricing.html)
Key Books to Read
Two books on environmental tax reform:
- Durning, Alan Thein, Yoram Bauman and Rachel Gussett. Tax Shift: How to Help the Economy, Improve the Environment, and Get the Tax Man Off Our Backs. Northwest Environment Watch. Seattle, WA. 1998.
- von Weizsacker, Ernest U and Jochen Jesinghaus. Ecological Tax Reform: A Policy Proposal for Sustainable Development. Zed Books. London, UK. 1992.