Paying the Non-Polluter
Slashing environmentally harmful subsidies will begin to mend the damage that fiscal policy has done to the planet. But such activities as driving and pumping groundwater, even when they are not subsidized, impose hidden costs on this and future generations, and remain falsely cheap. So subsidy reform alone will not put the global economy on a sustainable footing. Likewise, capturing more resource rents will facilitate economic development by allowing cuts in conventional taxes. But even this shift will not take on environmental problems directly. Driving and water use will still seem falsely cheap.