Climate Change and Tax Policy Essay Example | Topics and Well Written Essays - 2250 words

Climate Change and Tax insurance - Essay Example blow Tax is a kind of Pollution Tax purported to be utilise on the energy sources which emit carbon dioxide. (Wikipedia)1 The Carbon Emission Trading on the other manus as provided by Kyoto Protocol involves the spherical trading of permits to emit green house gases converted in terms of Carbon dioxide. (Wikipedia) 2Obviously there is a need to put a wrong on carbon to force companies to abandon older, dirtier technologies for newer, scavengeer ones. Today the atmosphere is being used as municipal dump where carbon dioxide is deposited free. The New York Times (2007) 3Once the governments start putting a monetary value on this privilege, business and industrial houses will be forced to evolve smarter shipway to run their business. A carbon taxation is one approach. Another is to impose a steadily change magnitude cap on emissions andSeveral arguments are being advocated for and against each of these two forms of measures that c an be undertaken by the different countries of the world. This case study ______________________________________________________________________Carbon tax is based on the carbon content of the fire being consumed by each entity individually. Under economic theory carbon tax represents an indirect tax on the negative externality as such tax would add up to the actual equal of production by internalizing the social cost of polluting the environment by emitting carbon dioxide and other gases.Charles Komanoff (2007)5 opines that to attack global warming, every energy-critical decision needs to be predicated on a trajectory of rising energy prices. A phased-in carbon tax allows this, whereas cap-and-trade will do little to mitigate the price roller-coaster that discourages emissions-minimizing investment. 2.1Cases for Carbon TaxLevying a tax on the emissions willReduce the fossil fuel usage and substitute them by clean fuels and technologyProvide a revenue steam to enable a progressive tax switching - Carbon Tax Centre6 Carbon tax could be extended to all carbon based consumptions tour trading systems may not be able to reach parts of the transportation and service sectors operation costs are lower in the case of carbon tax as compared to emissions trading Carbon taxes pose an effective system for the reduction of emissions as it is a permanent incentive to reduce the emissions Kevin Baumert