Reaction: The ESRI yesterday expressed concern about what might happen in the future following the Government decision not to press ahead with the introduction of carbon taxes.
Environmentalists yesterday also voiced disappointment and uncertainty about the Government's commitment to the Kyoto Protocol which requires Ireland to reduce greenhouse-gas emissions
Mr John FitzGerald of the ESRI said it was not for him to say the decision was right or wrong, but if the intention was to effectively tackle greenhouse-gas emissions, the decision was disappointing.
Mr FitzGerald said that, while the recent rise in fuel prices was being singled out as a deterrent, the institute had "endless research" which indicated that behaviour only changed with the "certainty" of long-term policies.
The most efficient way of persuading people towards good behaviour was to create a situation where they knew the price of something would rise slowly over the foreseeable future. The Government had made the same point on the website of the Department of Finance, but the latest move simply meant the future was uncertain.
Prof Frank Convery of UCD and Sustainable Energy Ireland said he was disappointed at the decision. A tax where refunds could be made to sectors which were not involved in emissions trading would be extremely useful in rewarding good behaviour. While the rise in the price of petrol was "some help", that rise was going to the oil-producers.
The Friends of the Irish Environment said the Government's decision to axe the carbon tax would result in higher costs to the consumer.
"If the carbon tax is abandoned, Ireland will have to purchase more carbon credits. This bill will fall on the taxpayer. But instead of the tax money being available to the Irish Government, as carbon tax would be, the payment for carbon credits will leave the country," said a spokesman, Mr David Healy.
Mr Pat Finnegan, of the environmental agency Grian, said: "The Government's decision to abandon its plans for a carbon tax effectively aligns Ireland with George W. Bush's sceptical and abstentionist stance on climate change."
He added that the decision "formally confines our own National Climate Change Strategy to the dustbin".
"Almost all of our European partners are in the frontline of the effort against climate change. Most of these countries have successfully operated a carbon tax for many years and are replacing fossil fuels with renewable energies financed by carbon taxation."
