Carbon Tax
Based off the article "How Carbon Tax Works" by Sarah Dowdy
There are two primary methods that are advertised as an economic way to reduce carbon emissions. The first is cap and trade, which is currently put in place to regulate sulfur dioxide emissions. In this method, an overall cap is put on the amount of emissions that are allowed, and industries may buy and sell emission allowances. The second method is the carbon tax. The carbon tax puts a price on the carbon itself. The tax may be applied at the level of the consumer, the producer, or the manufacturer.
Places that have implemented a carbon tax have done so at the level of the consumer. My problem with this is that it is not adequately addressing the issue of pollution because it is not directly attacking the source. Consumers in an area where a carbon tax is being administered may not have a choice but to live in that area that may not have access to clean energy. The increased price of energy to the individual consumer, who is not the problem when considering emissions proportionally with the big energy corporations, seems to be just too high. The 6 percent increase in Denmark led to the tax not being enacted. One possible advantage to this price increase is that it would help to even out the competition with renewable energy producers by making the prices more comparable. If the tax is administered widespread enough, then this strategy would be an excellent way to not only reduce emissions and pollution. It could also serve to catalyze a much-needed transition to renewable energy as a primary power source.
There are two primary methods that are advertised as an economic way to reduce carbon emissions. The first is cap and trade, which is currently put in place to regulate sulfur dioxide emissions. In this method, an overall cap is put on the amount of emissions that are allowed, and industries may buy and sell emission allowances. The second method is the carbon tax. The carbon tax puts a price on the carbon itself. The tax may be applied at the level of the consumer, the producer, or the manufacturer.
Places that have implemented a carbon tax have done so at the level of the consumer. My problem with this is that it is not adequately addressing the issue of pollution because it is not directly attacking the source. Consumers in an area where a carbon tax is being administered may not have a choice but to live in that area that may not have access to clean energy. The increased price of energy to the individual consumer, who is not the problem when considering emissions proportionally with the big energy corporations, seems to be just too high. The 6 percent increase in Denmark led to the tax not being enacted. One possible advantage to this price increase is that it would help to even out the competition with renewable energy producers by making the prices more comparable. If the tax is administered widespread enough, then this strategy would be an excellent way to not only reduce emissions and pollution. It could also serve to catalyze a much-needed transition to renewable energy as a primary power source.
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