.

By, JINAL JOLLY, ARUNKUMAR M, College of Engg, Guindy

Anna University,Chennai

CARBON TAX

What is carbon tax?CO2, a global warming contributor Need for carbon taxNo increase of tax for govt.AdvantagesDisadvantagesImplementationConclusion

An environmental tax on the carbon- di-oxide emissions from burning fossil fuels.

A fee attached to sources of GHG emissions in order to discourage their release.

Carbon tax is also known as CO2 tax or carbon-di-oxide tax.

The purpose of carbon tax is to protect the environment by penalizing the carbon-di-oxide emissions.

Scientific sensus holds that greenhouse gas emissions are the primary cause of global warming.

Carbon dioxide is the major greenhouse gas and as such it is considered as an air pollutant. Worldwide, 27 billion tonnes of carbon dioxide are produced by human activity annually.

The implementation of carbon tax is very essential. Because, the high levels of CO2 already in the Earth’s atmosphere and being added daily are destabilizing established climate patterns and threatening the ecosystems on which we and other living beings depend.

Major content of smoke is CO2

A carbon tax should be revenue-neutral. Revenue-neutral means that little if any of the tax revenues raised by taxing carbon emissions would be retained by government.

Two primary return approaches are being discussed.

1.The first method would refund the revenues directly through regular (e.g., monthly) equal dividends to all residents. In effect, every resident would receive equal, identical share of the total revenue amount.

2. In the other method, each dollar of carbon tax revenue would activate a dollar’s worth of reduction in existing taxes such as the income tax or sales tax.

Emission of carbon-di-oxide can be reduced in a bulk manner.

It increases the economic growth of a country.

A small additional income for poor people during the initial stage of implementation.

A worldwide method for reducing carbon emission.

Fossil fuels can be saved up to a greater extent for future generation.

Usage of non-combustible energy sources such as wind or solar energy can be promoted.

This is just a tax and not a penalty. Hence by implementing it, each and every citizen in the country can be made responsible for reducing CO2 emissions.

Companies can emit as much as they want, as long as they're willing to pay for it.

The poor spend a relatively larger portion of their income on carbon, and so they would be hitharder by a carbon tax.

This will be beneficial only for developed countries, but will affect developing countries.

Sweden enacted a carbon tax, placing a tax of $100 per ton on the use of oil, coal, natural gas, liquefied petroleum gas, petrol, and aviation fuel.

Denmark initiated a carbon tax in 1990, about $50 per ton of carbon. After 15 years, Denmark managed to cut their carbon emissions by 15 percent.

In 2009 France initiated 17 Euros per ton of CO2 as a carbon tax.

In 1990s, it was proposed that it would have taxed for all fuel sources based on their heat content. But it was not accepted.

In 2000, Carbon tax proposal was considered as a central planning solution for global warming.

Finally in 2007, Carbon Tax was initiated in U.S after lot of oppositions.

“Carbon tax is not yet implemented in india”.

Indians mostly concentrate on economical point of view rather than environmental point of view.

Adding an additional tax will severely affect the low income energy users.

So, Implementing carbon tax will be a great task in India.

Carbon tax is very important to limit all environmental related issues such as climate change and global warming.

Only very few countries have implemented carbon tax which has led to a greater environmental sustainability and protection.

But, it should be enforced in each and every country and more importantly, those activities which emit carbon without paying proper carbon tax should be considered as a criminal activity.

www.carbontaxcentre.orgwww.wikipedia.comwww.reasonfoundation.org