Although most economists argue that a carbon tax would be the most efficient solution, Sir Nicholas is neutral between a carbon tax and the other ways of raising the cost of emitting carbon by regulation or a cap-and-trade system.
Ferrari president Luca di Montezemolo has repeated his warning in Monaco that his team would pull out of F1 unless there was an amendment to the capregulation as it stands because of fears of it leading to a two-tier championship.
It is true that government regulation is punishing inefficiency and rewarding higher performance in specific use of resources through cap and trade measures for carbon and other regulations.