Environmental Lobby Proposes Vehicle CO₂ Tax

Photo: Postimees/Scanpix
1/26/2011 12:48 PM
Category: Politics

A report on fuel-efficient transportation proposed a carbon dioxide levy for Estonian car owners.

The Stockholm Environment Institute in Tallinn, a global think tank that conducted the study, concluded that the current fuel excise tax alone is an insufficient way to guide consumers toward more energy efficient cars, reported Eesti Päevaleht.

"Raising the fuel excise by 25 percent would only prompt a 1 percent more efficient vehicle selection. Establishing a registration fee or an annual fee, based on fuel consumption, would result in [20 percent] more fuel efficiency," said Mari Jüssi, who directed the study.

Finland, the report asserted, had the same consumer preferences in vehicle purchases as Estonia, until a carbon dioxide tax was imposed.

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