WASHINGTON – The United States and other developed nations should take advantage of low oil prices to impose a tax either on gasoline or fossil fuels — or both — according to the head of the Paris-based International Energy Agency.
In an interview during a recent trip to Washington, Maria van der Hoeven didn't shy away from the controversial issue of fuel taxes or on normalizing relations with Cuba, which she said provided opportunities for the United States to loosen its ban on the export of crude oil. Of the major developed nations, only Mexico has a lower federal gas tax, she said.
The IEA was created in response to the oil supply crisis of 1973-74, but today serves as both statistician and research guide for 29 developed nations (including the U.S.) that are large oil consumers.
Van der Hoeven is a former economics minister for the Netherlands. Here are some of her thoughts:
Q: Falling oil prices have been like a tax break for consumers, but you want to raise gasoline taxes now. Why?
A: We are not a climate agency … but what I really do hope is that these low oil prices will be used by policymakers as an opportunity to cut down fuel subsidies in those countries [such as Indonesia, Malaysia and Thailand] that do have them. Whether it is a carbon tax or you do it in a different way … put a price on carbon. Because now with the low prices, the economy won't be hurt, or will be less hurt, than in any other time so use that opportunity.
Q: Some have suggested a carbon tax to discourage emissions; others a gasoline tax to help pay for infrastructure improvements. You favor both and spending more on renewable energy. Explain.
A: Stick to your policies on energy efficiency, fuel efficiency, since it is helpful for your climate policies as well. Now it is possible. With high gasoline prices at the pump and cars that drink a lot of gasoline, it's a much different situation than you have now. You can't just talk about it. Put your words into action.
