"Reduce tax on employees and employers and put a tax on pollution. The more carbon dioxide one emits the more he pays in taxes," said Gore in an interactive session at the India Today Conclave here on Saturday.
Replying to a question by Minister of State for External Affairs Anand Sharma, Gore also suggested subsidising clean energy generation instead of carbon fuels like kerosene.
"Why do you subsidise carbon fuels. Why don't you subsidise solar energy," he asked.
Gore, a former US Vice President, said India can take a leadership role in tackling the issue of global warming.
"India has proven its capability in sectors like Information Technology and can be a leader in the world in developing new renewable technologies to combat climate change," said the 2007 Nobel Peace laureate.
Asked whether he would ever run again for becoming the President of the US, he replied in the negative. "I do not expect to be a candidate ever again, said Gore who lost the 2000 US Presidential election to George W. Bush.
Gore listed achieving a breakthrough in the deadlocked talks at the Kyoto climate changes conference as his key accomplishment during his tenure as Vice President.
However, he termed as his failure is being unable to convince US Senators to ratify the Kyoto Protocol on reduction of greenhouse gas emissions he helped clinch 10 years ago.
