The final effect of the carbon tax is determined by the way in which additional resources are handled. Every tax results in reallocation of scarce resources for purposes less desired by consumers. Not only do taxes diminish the utility of a consumer, but they also have a negative impact on economic growth.
Climate measures are based on combating the causes of rising temperatures and helping to slow down rising sea levels. But we do not know to what extent; nor do we know how long it will take. Meanwhile, the living environments of 500 million people will be at risk as a result of rising water levels.
For the upcoming Mayor’s election in the Hungarian capital, two out of four candidates have made the green, liveable city the centerpiece of their campaign. The election on October 13, 2019, will therefore show, among others, how well this topic can move voters in Budapest.
