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The Pros And Cons Of Implementing A Carbon Tax

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Growing concerns about climate change and pollution have brought environmental issues as a primary focus of the policy discussion and agenda in the United States. Since the onset of the industrial revolution over two centuries ago, there has been increasing quantities of greenhouse gases into the atmosphere. The continual rise in individual and corporate consumption of fossil fuels such as coal petroleum, and natural gas, has resulted in an adverse effect on climate change.
Currently, carbon dioxide emission is the primary gas triggering global warming and accounts for nearly 80 percent of the greenhouse gas impact (Baumert, 1998). In an effort to stimulate reductions in greenhouse gas emission, the government’s policy is centered on pricing …show more content…

The purpose of the carbon tax is to address economic and social costs by holding polluters accountable for their actions. The key advantages of a carbon tax is that it provides incentive for further adoption and development of more economically friendly production process, reduces greenhouse gas emission, and raises revenues in the government.
Carbon-intensive factors or production and services are expected to be replaced with low carbon emitting alternatives as the price of use and production of carbon increase (CTC, …show more content…

Its regressive nature results in a disproportionate distribution of the burden on select groups such as low-income households, workers, and investors in emission intensive industries (CTC, 2016). The burden on these select groups such as low-income households is due to the need for spending a larger share of their income on goods and services with the largest price increase such as electricity and transportation. Thus resulting in a decrease in the purchasing power of individual’s earnings (CTC, 2016). However, this disproportionate effect can easily be offset by properly returning the revenues using the methods described earlier: direct dividend or tax shifting. In using the proper revenue distribution method, the net impact of the carbon tax can be made progressive to benefit the select

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Angela, The article by Oren Cass, “The Carbon Tax Charade”, was a great addition to this week’s forum post topic. Cass provided a great example on how the worst problem with a carbon tax is its extraordinary regression. He further explains that because poorer households spend more of their income on energy than wealthier households, the price increases created by tax also increases the amount spent on energy costs. Studies show that a $15 per ton carbon tax would cost the bottom 10 percent of households more than 3.5 percent of their income, and most taxes under consideration are two to three times higher ().

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Might Be Affected Limiting Pollution Via The Cap And Trade Policy As Described In The Article?

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a. What is a good or service market that might be affected limiting pollution via the cap and trade policy as described in the article? Explain. Being provided with studies on automobile emissions and ways to improve the environment, it is the opinion of this writer that the automobile industry could be greatly affected by California limiting pollution via the cap and trade policy. Companies such as Toyota, Nissan, and Subaru are providing vehicle choices that contribute to lowered emissions. With the introduction of the Prius hybrid by Toyota, sales for the vehicle proved to be the greatest in areas such as California because of the C02 factors, and, therefore, the demand by consumers increased.

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This program would tax the general population and businesses on their excess use of fossil fuels. The money generated from this tax has been consistently argued about were it should be spent, however, a well liked solution has begun to emerge; putting the money towards renewable energy research projects. This would begin to break the debt-based fossil fuel cycle by providing consumers with another alternative (Conners). A carbon tax would force factories, businesses and the general population to become aware of their actions, helping to “change destructive environmental behaviour” (Conners). With an expense placed on carbon emissions, there would be a drop in extreme consumption of fossil fuels, as a result, people and businesses would adjust to more sustainable methods of

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Pros And Cons Of Cap And Trade

558 Words | 3 Pages

Pros of Cap and Trade Improved Economic Efficiency With the alternative proposal of a carbon tax, the economy is inefficient due to a set unit tax on pollution emission for firms of every size (likely making smaller firms worse off). Though the cap and trade system is flawed, the economy will shift to a more efficient point when the cost of reduction for every firm is determined by the relative amount of emission credits the firm needs. Additional revenue and profit Unneeded emission credits will be sold from one firm to another, creating an additional source of profit for the industries; in turn, renewable energy sources will become more attainable. The government is also subject to profits on what is called the “right to pollute”. However,

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How Does Carbon Tax Affect Australian Economy

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Introduction Due to an increasing concern of global warming, many governments worldwide have chosen to intervene to protect the environment(Bruvoll &Larsen,2002:3). A solution to this growing concern is to implement a emissions tax schemes. These schemes work by raising the monetary cost of producing and consuming fossil fuels, thus causing a decrease in usage of these fossil fuels which subsequently lowers the emissions released into the atmosphere(Arlinghaus J, 2016:28). However the implementation of a emissions tax scheme affect is not limited to the environment. The tax scheme also effects the standard of living of citizens, the financial well-being of firms and the economy.

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Under this system, entities which emit over 25,000 tonnes per year of carbon dioxide equivalent greenhouse gases and which were not in the transport or agriculture sectors are required to obtain emission permits. The permits can be either purchased from the government or issued free as part of industry assistance measures. The system was created to set a cap of Australia’s emissions to gradually reach the 2050 goal. Hence, removing the Carbon Tax system means that Australia needs to find another system to keep on

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Another strategy is reducing the speed on highways is an easy yet effective strategy that can help reduce global warming in Canada. Two percent of the energy is reduced when the speed is decreased (Desai, 2014) and around 40 grams of carbon emissions are saved when the speed is reduced by 20 km/h (Dumitval, n.d.). Diminishing the number of emissions from transportation by walking/biking or reducing the speed on highways will help reduce the impacts Canada is facing from global

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Carbon Tax Debate The issue of enacting federal carbon tax is one of the most debated in Canada right now. The Liberal party says that the tax could reduce carbon emissions by 90 million tonnes and will bring us twice as close to our Paris climate goals. The Conservative party believes this will unfairly affect consumers with higher taxes. I personally believe this plan should be enacted but with safeguards in place to help consumers and Provinces who would be negatively affected.

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