A taxing issue

  • 26/06/1998

  • Economist (London)

The UK government's energy review was announced on June 25th. The purpose of the six month review was, in effect, to shore up what remains of Britain's dying coal industry. The government has bought time for coal by delaying approvals for further gas fired plant; it also wants coal producers to cut their prices. As industrial policy, this is suspect; measured against the government's environmental boasts, it is incomprehensible. The trouble, is, the switch to gas has cut Britain's emissions of carbon dioxide (CO2) the main greenhouse gas. By slowing down this change, the government is discouraging further progress.