With new information regarding the harmful effects of greenhouse gasses on the earth’s atmosphere, upwards of ten countries have put in place some form of tax on their carbon emissions since the turn of the century. Prior to 2000, there were very few countries that already had some form of carbon tax in place.⁴ One of those countries was Norway. Norway was one of the most progressive countries in environmental regulations, first imposing a tax on greenhouse gas emissions in 1991.⁴ The Norwegian government felt the most effective way to lower their carbon emissions would be to place a high tax on the oil and gas industry in an attempt to force the companies to find greener ways of extracting the oil.⁵ They believed that by doing this, it would cause the overall price of oil to rise for domestic consumers and therefore cut the amount of oil consumed by a drastic margin. While the tax has done some good, such as making the Norwegian oil industry one of the greenest in the world, it has not been nearly as effective as they would have hoped.
While outsiders have generally classified the Norwegian carbon tax as a failure, the Norwegian government defends the program by stating that their GDP has increased by seventy percent, but their total carbon emissions have only increased by fifteen percent.⁷ We decided that for our project, we would look at why the Norwegian’s tax has not been as successful as they would have hoped, but also analyze the aspects of it that have allowed
Dr James Hansen’s argumentative essay, “A Solution to the Climate Problem,” discusses his premise that it is imperative for humankind to deal with carbon dioxide emissions, which he believes needs to be phased out by the mid-21st century. He begins with the current paradigm in government efforts to reduce carbon dioxide emissions and claims that so far it has been a lot of talk and action in the other direction. Dr Hansen argues that while governments pay lip service to agreements such as the Kyoto Accord, they are going full steam ahead with projects that will result in increased carbon dioxide emissions, such as going forth with coal-fired power plants, coal-to-liquids, hydraulic fracturing, and tar sands oil extraction. Dr Hansen believes
The argument about man’s role in climate change and the role of government, the role of industry and the role of citizens is a significant challenge that crosses all levels of government, crosses all geopolitical boundaries and crosses all sectors of business. National governments across the globe are dealing with the issue in different ways, but one overarching aspect of control and mitigation can be seen in the oversight and regulation of the electric energy industry. One significant challenge facing each nation is the cost to lower carbon emissions and the question of who will pay the additional cost for compliance. Though the cost issue is significant, a much more difficult question is whether any decision on lowering emissions can make
Stewart Elgie, a University of Ottawa law and economics professor and chair of the green economy think-tank Sustainable Prosperity suggests that British Columbia’s per-capita fuel usage had fallen more than 4 per cent compared with the rest of Canada and its economy (Ebner, McCarthy, 2011) Evidently it is reducing the amount of green house gasses emitted by fossil fuel use. However this is not the concern many had with the introduction of the tax, but the concerns were focused upon the externalities caused by this and the effects it would have on the economy. Three years since the carbon tax introduction and the Provincial level of GDP has remained approximately the same, (Greenery in Canada: We have a winner) With the provincial level of GDP remaining around the same, this suggests that at the very worst the carbon tax has had no negative effects to the provincial economy. Furthermore the tax also promised to remain carbon neutral and promised to cut corporate and private income tax. British Columbia has become the province with the lowest income tax regime and the lowest corporate tax regime (Greenery in Canada: We have a winner). Although the carbon tax is being praised by many, it still faces concerns as many still argue the ineffectiveness of the tax and what that means for the province.
For the last two decades, the increased use of fossil energy caused the environmental problems. The evidence of global warming, like drying rivers, extinction of species, melting of glaciers, became more often around the planet. The climate change became a threat to healthy environment and prosperity of humanity and wildlife, and the world community started searching for solution to combat climate change. In 2008 British Columbia introduced carbon tax on greenhouse gas (GHG) emissions to reduce global warming. Starting from $10 per tonne of CO2, the price was increasing annually till it reached $30 per tonne in 2012. During that period British Columbia was reducing harmful emissions and improving economy comparing to the rest of Canada. However, since the price rise on carbon stopped in 2012, no improving changes in cutting emissions, economy, and overall quality of life have been noticed. In this essay I will persuade that British Columbia should continue gradually increase price on carbon tax to the level where it will significantly cut the use of dirty energy, provide enough investments into the green projects, and support low-income families.
The commentary examines the imposition of carbon taxes in Singapore. A carbon tax is a specific tax placed on fossil fuels per unit of carbon emissions. This tax acts as an incentive for producers encouraging polluting firms to reduce their carbon emissions and switch to less carbon emitting energy resources and/or technologies from 2019 onwards. Greenhouse gas (GHG) emissions are a negative production externality; an externality that is created by the producer. This is a form of market failure as the market is unable to allocate factors of production efficiently. The over production of carbon emissions has dire effects on the environment as well as all of those within the global market.
In the beginning, the writers present the process of the research conducted by the MIT researchers and conclusions that showed how even a low carbon tax would be effective at lowering carbon emissions. The writers continue the article by pointing out the effects of different policies, relating to the revenue created from a carbon tax, on corporations and lower income households. Finally, the writers draw attention to the fact that this carbon tax will greatly influence the effects of global warming. This article was written for Americans and is a solution that is perfect for the political spectrum of any government institution within the United States. The article addresses ways that a carbon tax can be used to please both liberals and conservatives. Though the writers did not conduct their own research, they did cite a study conducted by university researchers and a government organization and use interviews with key researchers in the study. Though this article cites only one research study, the idea of a carbon tax is still a viable solution and it will be used in my research to show that there is a viable solution to the problem of air
The issue of carbon emissions is an important one not only from an environmental perspective but also an economic one. While reducing carbon emissions is an important one for the health of human beings as well as that of the environment, the larger question is what type of policy strategy is best for both reducing such emissions which might have an impact on efforts to mitigate the effects of pollution on climate change. While ther are options to consider which does not rely on economics-- technological or output standards achieved by command and control regulations--they are often fraught with political resistance by industry because they do not allow industry to make any choices or play a role in solving the problem of
Carbon taxing coal-based products, in a revenue-neutral way, will help discourage overuse of fossil fuels. The United States needs to reduce carbon emissions in order to avoid the costs that pollution and climate change inflict on the general economy and individuals. Carbon, unlike other commodities exchanged and consumed in the free market, bears unique costs to the general economy that its market price does not encompass. The pollution we create when we consume carbon contaminates our air, raises temperatures, and makes severe weather events more frequent. A carbon tax is an economic mechanism that forces actors in a free market to come face-to-face with the social cost of
Stephane Dion (2007) published a summary of the liberal party’s proposal intended to decrease the carbon emissions in Canada. The liberal party suggested making the carbon emissions reduction not only a governmental concern but also the businesses need to get involved. This proposal recommended having a targeted goal so that all the businesses can be on the same page. The industries that would respect these new regulations and reduce their carbon emissions would be recognized and those that do not would be penalized. The party believed that the long-term positive effects outweigh socially and economically the negative impacts. The liberal party was certain that this new plan took into account the human lives threaten by climate change. Reading this article, the question that arose is: would this plan affect the economy of the country if applied?
Climate change has been an increasing concern in today’s world and has proven to be detrimental in the coming years. With the increasing human population, the consumption of fossil fuels has been in high demand and this poses a threat in the future. After several years of political and cultural pressure to take a stand on climate change and in order to control the regulation of carbon dioxide emissions into the atmosphere, British Columbia implemented the carbon tax on July 1, 2008 (Murray and Rivers, page 3). This tax was the first to be imposed in North America and was revenue-neutral (Murray and Rivers, page 3). Due to its myriad of benefits, the carbon tax was favored by many and did has not disappointed; not only have greenhouse gas emissions dropped, but business have grown tremendously, and other energy sectors are flourishing. While counter arguments may highlight the negative effects of the taxation policy, rebuttals often overlook the long-term advantages. In this paper, I will prove that the carbon tax policy in British Columbia has had several beneficial outcomes such as the reduction of greenhouse gases and economic growth. I will then raise an opposition to my thesis by arguing that the short-term economic effects will be damaging to the lower-income classes. However, I will show that this objection is not as valid because the long-term benefits, both economically and environmentally will ultimately prove integral in the alleviating future climate change.
Tremendous amounts of carbon dioxide are released into the atmosphere every day and the consequence is the destabilization of Earth’s climate and damage to existing and endangered ecosystems. In order to avoid these ramifications, carbon emissions must be reduced. Industrial nations like the United States rely heavily on the burning of billions of tons of fossil fuels, such as coal, oil and natural gas, as their primary source of energy generation. Unfortunately, this has led to the United States being one of the top leaders in carbon emissions in the world along with India and China (Woodard, 2007, pg. 27). A proposed solution that has already been implemented in several nations is the carbon tax (CO2 tax), which puts a price on and taxes the carbon dioxide emitted from the burning of fossil fuels and makes polluters pay the price for the emission of their negative externalities into the environment. As fuel follows through with the combustion process, carbon dioxide is released into the atmosphere where it remains. The carbon dioxide traps the heat in the Earth’s atmosphere leading to a rise in global warming and climate change (Carbon Tax Center, 2016a, What’s a Carbon Tax section, para. 2). A carbon tax can quickly and easily be implemented by the United States federal government and has the potential to conserve the environment by reducing carbon emissions,
Government enacted solutions are probably the most effective ways to reduce carbon emissions and to control pollution since unfortunately the majority of individuals mainly act to their own self-interest and are not concerned with the future of the planet. This is a prime example of the tragedy of the commons, which is the exploitation of a common resource. In this case the common resource is the atmosphere. The first method proposed is the carbon cap trade system. The term cap means the limit or the maximum of the amount of pollutant to be emitted. A trade refers to the transfer of permits that have to be bought by firms that need to increase their volume of emissions from firms that require fewer permits 1. The carbon tax method is a tax on the carbon content of fuels — effectively a tax on the carbon dioxide emissions from burning fossil fuels 2. So, which system would be best for the government to enact to reduce carbon emissions in the atmosphere?
In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce
In managing the emissions of GHGs(Green House Gases), carbon taxes will be imposed mid 2012. "Economic theory anticipates that with the increased costs of emitting GHGs, drives emitters to downsize their activities." Salem Press (2009)
The most pragmatic approach for a carbon tax system would be a tax on the carbon content of fossil fuels. A carbon tax could be applied to a significant number of points in the “product cycle” of fossil fuels, ranging from primary fuel extraction to product and service end use. Even though emissions occur at the energy generation point, but there would be far less monitoring points and hence lower implementation costs if carbon contents were measured and policy was applied to wholesale use. On a global scale, it