Carbon Tax
Jump to navigation
Jump to search
A Carbon Tax is a Tax Levy that is Pigovian tax on carbon dioxide emissions.
- Example(s):
- Counter-Example(s):
- See: Carbon Pricing, Carbon Dioxide, Combustion, Renewable Energy.
References
2022
- (Wikipedia, 2022) ⇒ https://en.wikipedia.org/wiki/Carbon_tax Retrieved:2022-8-28.
- A carbon tax is a tax levied on the carbon emissions required to produce goods and services. Carbon taxes are intended to make visible the "hidden" social costs of carbon emissions, which are otherwise felt only in indirect ways like more severe weather events. In this way, they are designed to reduce carbon dioxide () emissions by increasing prices of the fossil fuels that emit them when burned. This both decreases demand for goods and services that produce high emissions and incentivizes making them less carbon-intensive. In its simplest form, a carbon tax covers only CO2 emissions; however, it could also cover other greenhouse gases, such as methane or nitrous oxide, by taxing such emissions based on their CO2-equivalent global warming potential. When a hydrocarbon fuel such as coal, petroleum, or natural gas is burned, most or all of its carbon is converted to . Greenhouse gas emissions cause climate change, which damages the environment and human health. This negative externality can be reduced by taxing carbon content at any point in the product cycle.[1] [2] Carbon taxes are thus a type of Pigovian tax. Research shows that carbon taxes effectively reduce emissions.[3] Many economists argue that carbon taxes are the most efficient (lowest cost) way to tackle climate change.[4] [5][6][7] [8] Seventy-seven countries and over 100 cities have committed to achieving net zero emissions by 2050. [3], carbon taxes have been implemented or scheduled for implementation in 25 countries, [9] while 46 countries put some form of price on carbon, either through carbon taxes or emissions trading schemes. [10] On their own, carbon taxes are usually regressive, since lower-income households tend to spend a greater proportion of their income on emissions-heavy goods and services like transportation than higher-income households. To make them more progressive, policymakers can try to redistribute the revenue generated from carbon taxes to low-income groups by lowering income taxes or offering rebates, then as part of the politics of climate change the overall policy initiative can be referred to as a carbon fee and dividend, rather than a tax.
- ↑ Bashmakov, I.; et al. (2001). “6.2.2.2.1 Collection Point and Tax Base". In B. Metz; et al. (eds.). Policies, Measures, and Instruments. Climate Change 2001: Mitigation. Contribution of Working Group III to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Print version: Cambridge University Press, Cambridge, UK, and New York, N.Y., U.S.A.. This version: GRID-Arendal website. Archived from the original on 28 December 2013. Retrieved 8 April 2011.
- ↑ Bashmakov, I.; et al. (2001). “Policies, Measures, and Instruments". In B. Metz; et al. (eds.). Climate Change 2001: Mitigation. Contribution of Working Group III to the Third Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge University Press, Cambridge, UK, and New York, N.Y., U.S.A. Archived from the original on 5 October 2018. Retrieved 20 May 2009.
- ↑ 3.0 3.1 "Carbon Taxes: What Can We Learn From International Experience?". Econofact. 3 May 2019. Archived from the original on 7 May 2019. Retrieved 7 May 2019.
- ↑ Gupta, S.; et al. (2007). "13.2.1.2 Taxes and charges". Policies, instruments, and co-operative arrangements. Climate Change 2007: Mitigation. Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (B. Metz et al. Eds.). Print version: Cambridge University Press, Cambridge, U.K., and New York, N.Y., U.S.A.. This version: IPCC website. Archived from the original on 29 October 2010. Retrieved 18 March 2010.
- ↑ "Carbon Taxes II". igmchicago.org. Archived from the original on 26 November 2016. Retrieved 6 July 2019.
- ↑ "Carbon Tax | IGM Forum". Archived from the original on 26 November 2016. Retrieved 6 July 2019.
- ↑ "Climate Change Policies". igmchicago.org. Archived from the original on 18 November 2018. Retrieved 6 July 2019.
- ↑ "ECONOMISTS' STATEMENT ON CARBON DIVIDENDS". clcouncil.org. 2019. Archived from the original on 18 January 2019. Retrieved 18 February 2019.
- ↑ World Bank Group (6 June 2019). “State and Trends of Carbon Pricing 2019". hdl:10986/31755. p. 24, Fig. 6
- ↑ World Bank Group (6 June 2019). “State and Trends of Carbon Pricing 2019". hdl:10986/31755. p. 21