ipl-logo

The Pros And Cons Of Implementing A Carbon Tax

2125 Words9 Pages

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

Show More
Related

Summary Of The Carbon Tax Charade By Oren Cass

254 Words | 2 Pages

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 ().

Read More

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

570 Words | 3 Pages

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.

Read More

11th Hour Quote Analysis

873 Words | 4 Pages

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

Read More

Pros And Cons Of Cap And Trade

558 Words | 3 Pages

However, if firms find a way to manipulate the cap and trade policy by making a profit, there will be no benefit associated with switching to renewable resources. Secondly, the efficiency gained from a carbon tax could lead to more emission reduction than originally planned, while cap and trade is set with a specific amount of carbon pollution allowed. Increased prices The goal of Cap and Trade is the lowest possible cost to maintain a certain level of acceptable pollution. If the industries’ intentions are to lower carbon emission rather than to make a profit, it will, at first, require higher costs of production for more efficient, newly discovered energy sources, thus increasing the price of their

Read More

How Does Carbon Tax Affect Australian Economy

891 Words | 4 Pages

Theory of carbon tax A carbon tax is introduced to curb the short

Read More

Why Do We Need A Risky Environmental Policy In 2267

1050 Words | 5 Pages

This paper will examine the potential harm caused by the Canadian government implementing a risky environmental policy that gives subsidies to coal producers while taxing producers of renewable energy. The policy will cause an environmental disaster in 2267 if implemented, and thousands will die because of this policy. This paper examines the key arguments of both sides, in order to understand the cases for and against the policy based on how much harm both sides believe will be caused. If a risky environmental policy is chosen that would benefit people now, but would directly cause the deaths of thousands in 2267 then one may view the policy as harmful.

Read More

Pros And Cons Of Tax Reform

1393 Words | 6 Pages

Also, Peterson argues that with the implementation of the carbon tax, other taxes will be replaced (Peterson 2015, 154). Again, he leaves the reader questioning what taxes Peterson wishes to replace with a carbon tax in order to evaluate whether such a replacement is even feasible. Moreover, a potential consequence of a carbon tax in the form of pollution permits is the steering away of investors to developing economies with

Read More

Canada Should Minimize The Consumption Of Home Energy

714 Words | 3 Pages

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

Read More

Uk 2050 Calculator Essay

1569 Words | 7 Pages

This failure to meet its target is heavily influenced by the current government’s focus on reducing the UK’s debt to GDP ratio which impedes on its current ability to allocate emissions reducing incentives and subsidies to all sectors of the UK economy. However, it should be noted that if international freight and aviation were not included into the 2050 calculator, the pathway would achieve its 80% reduction target by

Read More

What Are The Pros And Cons Of Carbon Tax In Canada

464 Words | 2 Pages

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.

Read More

Ethanol: The Impact Of Global Climate Change At Heart

791 Words | 4 Pages

The rise was so dramatic, the trucking industry could not afford to absorb the costs and created the fuel surcharge to offset the price at the pump. While this aided in lowering the price paid by the trucker, this cost was passed on to the consumer. The price of fuel caused the industry to become very concerned, though preservation of the environment was not the priority. In the market, the economy is the last thought, but due to the economy, actions taken by the industry have led to decreases in the amount of fuel being consumed by the trucking industry. (Fuel Surcharge Index 2016)

Read More

The Pros And Cons Of Climate Change

442 Words | 2 Pages

In order to improve the disadvantage and allay the fears that the leaders have on economic concerns as a result of the Climate Change Policy, the government can do more in finding alternative energy sources that will not depend on the fossil fuels. Fossil fuel emission is the leading source of carbon emissions; if alternatives green sources are developed there will be less reliance on this form of energy (EPA, 2014). 2. Reference List (utilizing full APA citations) 350.org (2016). New Paris climate agreement ratifications reaffirm necessity to divest and break free from fossil fuels.

Read More

Essay What Could Explain This Change In The Price Of Pollution Permits

774 Words | 4 Pages

Such negative externalities incur costs for the government e.g. breathing problems would result in an increase in health costs such as more purchasing more asthma pumps and breathing masks. Therefore an increase in the price of pollution permits would make it costly to pollute which should discourage polluting firms from polluting huge amounts. Therefore negative externalities such as breathing problems are internalised and governments’ expenditure on the health sector is reduced. Since the pollution permits create a market for buying and selling carbon permits, the government can raise funds by selling pollution permits to the industry. The revenue made could then be used to clean up the environment or compensate

Read More

Carbon Tax Australia Essay

452 Words | 2 Pages

Carbon taxes are an economic silver bullet In addition to carbon taxes’ potential to rapidly reduce the deficit, they provide countries with a new source of revenue, therefore reducing the pressure on politicians to generate funds through social program cuts and income tax hikes. For example, Australia’s recent carbon market is forecast to generate $4 billion in profits in 2013; the UK will make $1.06 billion in same period. The U.S.’ own Regional Greenhouse Gas Initiative (RGGI) makes about $200 million annually. Though these numbers are modest in the world of national finance, part of the beauty of a carbon tax is that the cost of carbon can be ratcheted higher, which increases governmental revenue while improving the environment.

Read More

Advantages And Disadvantages Of Government Intervention

1195 Words | 5 Pages

Thus, an unpopular tax on a product that produces negative externalities, such as car use that creates environmental damage, may be avoided due to the fact that the government is afraid of losing support from the

Read More

More about The Pros And Cons Of Implementing A Carbon Tax

Related Topics

Open Document