+ France considers taxing disposable goods

By way of Harvard econ professor and textbook author Greg Mankiw comes news that France may start taxing disposable consumer goods as a means of decreasing demand:

Plastic forks, disposable diapers, drafty houses - if it hurts the environment, make it cost more. That's the message France's government wants to send with a raft of proposed new taxes.

France's ecology minister said Sunday the government is considering a "picnic tax" on disposable dishes to encourage people to use reusable plates and cups instead.

The idea is meant to change the habits of both consumers and manufacturers by getting people to calculate the environmental cost of their waste, though some critics - even within the Finance Ministry - fear it could crimp growth.

For more on this concept (called Pigovian taxation), read Mankiw's paper, "Smart Taxes."