Germany Joins EU in Tying Car Fees to Emissions

In Germany, described as the EU’s “most car-obsessed nation” in this Spiegel Online article, the government will reduce taxes on small cars and charge a penalty of €2 for every gram of carbon emitted per kilometer over a 120-gram limit. The tax plan may encourage consumers to choose small, fuel-efficient vehicles. “With carmakers Audi, BMW, Mercedes and Porsche leading the way, a large percentage of cars produced by the German auto industry has traditionally emphasized speed and luxury over economy and fuel efficiency,” notes Spiegel Online, and such luxury vehicles are exported around the globe. Those who love powerful cars bemoan the new plan while environmentalists insist the plan does not go far enough. More than 12 EU countries charge extra for carbon emissions in vehicle tax formulas. – YaleGlobal