‘In a sustainable economy, taxes on renewable resources including work—human labour—are in fact counterproductive and should be re-thought. The resulting loss of state revenue could be compensated by taxing the consumption of non-renewable resources in the form of materials and energies, and of undesired wastes and emissions. Such a shift in taxation would promote and reward a circular economy with its local low-carbon and low-resource solutions. These are inherently more labour-intensive than manufacturing, because economies of scale in a circular economy are limited.’
'Changing the tax focus will in itself foster the transition to a more sustainable economy in terms of both energy and materials'
From: Walter R. Stahel (2011) The Virtuous Circle? Sustainable Economics and Taxation in a Time of Austerity. Think Piece nr 63. CII.