Source: Adam Smith Institute
by Tim Worstall
“Let us imagine, just for a moment, that this climate change thing is really big and important. So much so that we’re going to subsidise people moving from internal combustion engines over to electric vehicles. No, no, don’t worry about whether all that is true or not, necessary or a good idea. That’s just the set up. We’ve got to shift that transport sector and we’re going to do it via subsidy. ‘Andy Burnham is preparing to raise tariffs on Chinese electric cars as part of a closer relationship with the EU.’ … The answer to climate change is that we both subsidise electric vehicles and also that we tax electric vehicles at a rate of 45%. That the political process would even consider this – this before how we all know there will be those who think it a good idea – shows, precisely, why politics and good economics just do not mix.” (10/09/26)
https://www.adamsmith.org/blog/a-lovely-example-of-why-politics-is-bad-at-economics