Tuesday, 6 May 2008

UK Fuel Duty... does it work?

There has been a long running policy in the UK to encourage the use of alternative fuels and methods of transport. One way this has been achieved is by applying a steadily rising duty to the cost of fuel.

Whether this actually works has been a topic of argument for just as long as the policy has been in place; now it looks as though we may be able to tell...

Simply it should be possible to see if the the recent fuel price hikes have led to a reduction in usage.

If they have then steadily raising the prices will reduce use (at the possible cost of jobs and homes), if usage hasn't decreased notably then the policy must be fatally flawed.

So far I've not found any assessment of this but maybe some think tank will do the number crunching and lets us all know.

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