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Carbon Tax |
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Carbon tax is a best way to slow down global warming. Carbon tax can be referred to as an environmental tax, which is imposed on GHG or carbon dioxide emissions. Carbon tax can be treated as a type of pollution tax, imposed to reduce global warming.
It is believed that Carbon tax, which not only limit trade markets alone but will also lead to enormous technological changes in the energy system of world, which needs to fight the severe problem of global warming. Carbon tax is both a limitation as well as a trade policy, which can be defined as a strategic approach towards slowing down global warming.
The European Union has already accepted carbon tax, since 2005 under the Kyoto Protocol. Carbon tax recognized as a straight tax imposed on energy production is a simpler and cheaper way to put a limit on tens of thousands of polluters. The world is preparing to set up a descendant agreement to the Kyoto Protocol by the end of next year, and so the main focus is on limitation of pollution. Carbon tax is an efficient way to fight emissions and reduce global warming.
It is believed that carbon taxes would curtail quickly emissions across all significant sectors of the economy. Automobile and manufacturing are the major sectors where emission of carbon takes pale on large scale, carbon tax here will cut emissions at a faster phase. Imposing carbon tax will be more efficient approach rather than imposing a trade limit on carbon trading. Carbon tax can be calculated in various ways. One of the methods can be described as according to EIA, on emissions of a total of 20 pounds of CO2 per gallon of petroleum, a tax of $100 per ton of CO2 is imposed, which means $1.00 per gallon.
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