LIKE many other prominent economists, Dr Diane Coyle is concerned about the market economy's failure in pricing fossil fuels and their externalities.
In The Economics Of Enough (2011), she writes: "(Governments should)... discourage spending, via taxes on consumption and especially high-carbon consumption".
The article "Oil price plunge: The good news" (Jan 23) confirmed this when a motorist told The Straits Times that with the lower petrol prices: "I no longer have to spend time planning my routes carefully to ensure I save on petrol... I can also take a few more joyrides."
To discourage this kind of waste of limited resources, which leads to pollution, traffic congestion and climate change, the Singapore Government should take this opportunity, when there are exceptionally low crude oil prices, to increase the petrol excise duty and impose a similar tax on diesel fuel as well.
Anecdotal evidence seems to suggest that little is done by diesel vehicle operators to reduce fuel consumption; the product is simply too cheap.
Malaysia should also introduce a similar carbon consumption tax, to put prices in line internationally. Now is the time to do it.
Morten Strange
In The Economics Of Enough (2011), she writes: "(Governments should)... discourage spending, via taxes on consumption and especially high-carbon consumption".
The article "Oil price plunge: The good news" (Jan 23) confirmed this when a motorist told The Straits Times that with the lower petrol prices: "I no longer have to spend time planning my routes carefully to ensure I save on petrol... I can also take a few more joyrides."
To discourage this kind of waste of limited resources, which leads to pollution, traffic congestion and climate change, the Singapore Government should take this opportunity, when there are exceptionally low crude oil prices, to increase the petrol excise duty and impose a similar tax on diesel fuel as well.
Anecdotal evidence seems to suggest that little is done by diesel vehicle operators to reduce fuel consumption; the product is simply too cheap.
Malaysia should also introduce a similar carbon consumption tax, to put prices in line internationally. Now is the time to do it.
Morten Strange
