Carbon Tax Makes Sense
A Carbon tax can discourage the use of fossil fuels and encourage a shift to less- polluting fuels, thereby limiting the Carbon Dioxide emission that are by far the most prevalent Green house gas Deterring the burning of fossil fuels is crucial to reducing the accumulation of heat-trapping green house gases in the earth's atmosphere.
Carbon taxes, levied on Coal, Oil products and Natural gas in proportion to their carbon content, can be collected from fuel suppliers. They in turn will pass on the tax in the form of higher prices for electricity, gasoline, heating oil and so on,as well for the products and services that depend on them.
This provides incentives to Producers and Customers alike to reduce energy use and shift to lower-Carbon fuels or Renewable energy sources through Investment and Behavior.
While addressing climate change by reducing Greenhouse gases, Carbon Taxes can also generate more immediate Health and Environmental benefits, particularly reducing deaths that occurs from local air pollution. On the other hand, they can use to counteract economic harm caused by higher fuel prices. Govt. can use Carbon Tax Revenue to ease the burden of taxation on workers by lowering Personal Income Taxes. It can also fund productive Investments to achieve sustainable development goals including reducing Hunger, Poverty, Inequality and Environmental degradation.
Carbon Taxes are straight forward to administer because they can be be backed on existing, which most countries already collect with ease. It is also possible to link Carbon Taxes in royalties paid by
Coal Mining, oil and Gas drilling industries. In fact, the Fiscal and Administrative case Carbon Taxes may be especially appealing in Developing Economies, where large informal sectors of economy constrain revenue that can be collected from broader taxes on Income and Profits. With the establishment of Emission - Monitoring capacity, variants of Carbon Taxes can be applied to other sources of Greenhouse Gases such as Emission from Forestry, International Transportation, Cement manufacturing, Mining and Drilling activities.
The most immediate challenge is, however, mining mitigation policy forward at the national level: Carbon Taxation can be very difficult politically. Carbon Taxes should be introduced gradually, with
targeted assistance for low-income households, Trade dependent industries and vulnerable workers. The rationale for reform and use of revenues must be clearly communicated to the public. One potentially promising approach avoids a politically difficult increase in fuel prices by implementing
Revenue-Neutral tax subsidies to promote incentives for cleaner power generation, shifting to cleaner vehicles and improvement in Energy efficiency.
-------------------
Carbon taxes, levied on Coal, Oil products and Natural gas in proportion to their carbon content, can be collected from fuel suppliers. They in turn will pass on the tax in the form of higher prices for electricity, gasoline, heating oil and so on,as well for the products and services that depend on them.
This provides incentives to Producers and Customers alike to reduce energy use and shift to lower-Carbon fuels or Renewable energy sources through Investment and Behavior.
While addressing climate change by reducing Greenhouse gases, Carbon Taxes can also generate more immediate Health and Environmental benefits, particularly reducing deaths that occurs from local air pollution. On the other hand, they can use to counteract economic harm caused by higher fuel prices. Govt. can use Carbon Tax Revenue to ease the burden of taxation on workers by lowering Personal Income Taxes. It can also fund productive Investments to achieve sustainable development goals including reducing Hunger, Poverty, Inequality and Environmental degradation.
Carbon Taxes are straight forward to administer because they can be be backed on existing, which most countries already collect with ease. It is also possible to link Carbon Taxes in royalties paid by
Coal Mining, oil and Gas drilling industries. In fact, the Fiscal and Administrative case Carbon Taxes may be especially appealing in Developing Economies, where large informal sectors of economy constrain revenue that can be collected from broader taxes on Income and Profits. With the establishment of Emission - Monitoring capacity, variants of Carbon Taxes can be applied to other sources of Greenhouse Gases such as Emission from Forestry, International Transportation, Cement manufacturing, Mining and Drilling activities.
The most immediate challenge is, however, mining mitigation policy forward at the national level: Carbon Taxation can be very difficult politically. Carbon Taxes should be introduced gradually, with
targeted assistance for low-income households, Trade dependent industries and vulnerable workers. The rationale for reform and use of revenues must be clearly communicated to the public. One potentially promising approach avoids a politically difficult increase in fuel prices by implementing
Revenue-Neutral tax subsidies to promote incentives for cleaner power generation, shifting to cleaner vehicles and improvement in Energy efficiency.
-------------------
Comments