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Carbon Energy Taxations Essay

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Updated: Dec 12th, 2019

Introduction

For many years, companies, businesses, individual, and other entities have used fossil fuels, which release carbon dioxide during combustion. Carbon dioxide is a gas that emanates from the reaction of oxygen and carbon during combustion of fossil fuels. However, carbon dioxide is not friendly to the environment as it leads to various negative effects such as pollution and global warming.

The environmental effects caused by extensive release of carbon dioxide compelled countries and environmental activists to look for ways of reducing consumption and the use of fossil fuels, as they contain high amounts of carbon.

Some of the strategies used include legislations such as the Kyoto protocol, which is an agreement imposed on developed countries to minimize the amounts of carbon fuels used by their industries (Lungerfold, 2010).

Another important strategy was the introduction of carbon taxes, a cost effective technique where countries pay a certain amount of tax depending on the level of carbon dioxide that they emit from fossil fuels into the environment.

The prime goal of carbon taxing strategy is to reduce the negative environmental impacts of carbon dioxide. Therefore, this proposal explains the economic impact and effectiveness of carbon taxes in environmental protection.

Literature Review

The effects of carbon dioxide and greenhouse gases such as global warming, destruction of the ozone layer, acid rains, and pollution of air forced states and environmental activists to devise strategies of minimizing the effects of carbon dioxide on the environment. Among the strategies devised is the use of carbon taxes, which is a form of tax charged on the amount of carbon emissions released into the environment (Hsu, 2012).

The strategy is a market-based option whose main objective is to help mitigate the negative impacts of carbon dioxide and conserve the environment. States and countries apply carbon taxes on delivery, supply, and manufacture of products. In addition, application of the strategy extends to the use of fuels and the amount of carbon emitted in the process of production.

Tisdell (2005) argues that, “the imposition of the carbon tax is to reduce the rise in the level of atmospheric carbon dioxide and prevent the onset of the greenhouse effect, which is a public issue of global warming” (p. 194).

Therefore, carbon taxing is a cost effective and environmental friendly strategy that helps reduce the effects of carbon dioxide by discouraging businesses, industries, individuals, and other entities from using fuels that contain high carbon content.

Carbon taxing is a strategy employed by states and countries to minimize the use of fossil fuels that contain high carbon levels. The application of the strategy entails charging a certain amount of tax on the level of carbon available in the fuel. Consequently, imposing the tax on fuel that has carbon leads to a relative increase in the cost of fuel (Hsu, 2012).

Hence, individuals, businesses, and industries look for alternative sources of energy like natural gas, oil, and coal that contain little amount of carbon so that they can minimize the cost of production. This leads to reduced use of fossil fuels, which contains high levels of carbon and a subsequent reduction of environmental effects of carbon dioxide.

Miller (2007) argues that human activities have increased emissions of carbon dioxide, which have accumulated in the atmosphere for many years as a greenhouse gas and cause global warming. Thus, it is evident that carbon taxing is one of the strategies that reduce the negative effects of carbon dioxide and other greenhouse gases in the environment.

Taxing of carbon content in fossil fuels is a very effective strategy if properly implemented by countries. The strategy reduces emission levels of carbon dioxide from human activities such as businesses, homes, and industries.

Since the strategy levies a certain amount of tax on the carbon content present in fossil fuels, many businesses, and industries opt for alternative sources of energy so that they can reduce the cost production (Miller, 2007). Hence, an overall reduction in the emissions of greenhouse gases such as carbon dioxide.

The reduction of carbon dioxide emission leads to low levels of environmental degradation and economic constraints associated with carbon dioxide and other greenhouse gases. According to Hsu (2012), the negative effects of carbon dioxide emissions display a relationship of cause and effect, not a mere correlation.

Thus, for every emission of carbon dioxide and other greenhouse gases, there is an increase in the level of environmental degeneration, which leads to lower rates of productivity. Therefore, carbon taxing of fossil fuels significantly reduces environmental problems linked to global warming and emissions of greenhouse gases.

The carbon tax is a cost effective market-based strategy that does not only discourage the use of fossil fuels with high carbon content, but also brings revenue to countries implementing the strategy. States and governments use carbon tax to address the challenges brought about by the emissions from carbon dioxide and greenhouse gases.

All aspects of state or government feel the effects of carbon taxes because an increase in the cost of production leads to increased cost of products. Hence, even the low-income earners in the society feel the effects of the strategy. Lungerfold asserts that, “keeping in mind the potential amount of the carbon tax revenue and distribution could have appreciable impacts” (p. 138).

Furthermore, carbon tax has its foundation on the principles of economy. It focuses on the principle of unconstructive externalities, which represent unpaid costs. Thus, imposing the tax on fossil fuels that contain carbon ensures that consumers who use the fuels pay for the effects of carbon dioxide emissions.

Discussion and Analysis

The proposal will analyze whether taxing carbon content present in fossil fuels is an effective strategy of discouraging their use.

In addition, the paper will determine if the strategy is cost effective by assessing whether its implementation increases revenues to countries and states, but does not hurt the economy of the government. The proposal will also check the magnitude of the policy in line with its implementation and if it affects the citizens who reside in the country.

Ekins (2009) notes that the cost of fossil fuels will increase due to the carbon tax imposed on the amount of carbon dioxide emitted into the atmosphere. Furthermore, the paper will analyze how governments use carbon taxes to address the challenges occasioned by carbon dioxide and emission of greenhouse gases.

It will also assess whether the implementation of carbon taxing strategy to minimize the negative effects of carbon dioxide leads to increased product prices and cost of living. Moreover, the proposal will check if economists and states use the policy of the carbon tax based on the negative externalities principle.

The proposal will analyze if the principle dictate that only the potential users of fossil fuels with high carbon contents pay for the effects occasioned by the carbon dioxide emissions. This implies that the proposal will analyze the economic impact of carbon taxes on governments.

In addition, the proposal will identify the negative effects of carbon dioxide and greenhouse gases such as destruction of the ozone layer, acid rains, pollution, and global warming. Moreover, the proposal will check the efforts that countries have put in place to address these negative effects.

The paper will also study the progress made by governments in implementing carbon taxing in the production, delivery, and supply of products to consumers and business people. According to Tisdell (2005), the main objective of the carbon tax is to minimize the impact of carbon dioxide and greenhouse gases.

Furthermore, the proposal will analyze the amount of tax charged on carbon contents present in fossil fuels. In this view, the proposal will examine what the states and governments have achieved in reducing emissions from carbon dioxide and greenhouse gases in terms of environmental conservation and economic development.

Moreover, the paper will analyze how states and governments are implementing the policy of carbon taxing. It will also check the effectiveness of the policy in discouraging potential consumers, businesses, and industries from using fossil fuels that have a high content of carbon.

Furthermore, the paper will check the extent to which carbon dioxide emissions from industries and other human activities pollute the environment, lower productivity of environment, and increase the cost of goods and services. The proposal will assess how states and governments use carbon tax strategy in minimizing the use of fossil fuels that contain high levels of carbon.

It will also analyze how states apply the policy like charging a certain amount of tax on the level of carbon emitted from fossil fuels. Additionally, the proposal will determine if the policy of carbon taxing has discouraged business people, industries, and individuals from using fuels that have high carbon content.

According to Karnosky (2001), carbon dioxide has extensive effects on plants and other forms of ecosystem as it leads to global warming, which results in climate change. Moreover, the proposal will determine whether businesses and industries have employed alternative sources of energy like solar, hydro-electricity, and wind, which are friendly to the environment in production.

In addition, the paper will analyze the level of success on the state or the government in ensuring that businesses, industries, and individuals minimize the use of fossil fuels that have high levels of carbon. The analysis will establish if the carbon taxes have reduced environmental effects of carbon dioxide and other greenhouse gases.

The proposal will analyze the country’s level of involvement in the implementation of carbon taxes. It will also check if the strategy helps reduce the emissions of greenhouse gases like carbon dioxide in processing plants and businesses. Moreover, the proposal will analyze the progress made by governments in discouraging factories and business firms from using fuels that contain high levels of carbon.

The proposal will check if the reduction of carbon dioxide and greenhouse gas emissions has led to increased revenues and environmental conservation as well as productivity in countries. Furthermore, Jiang (2012) highlights that, for systematic and sustainable development, a state should practice conservation strategies that support continuous development of the country for present and future generations.

Therefore, the proposal will identify the level of the carbon tax charged for carbon content of fossil fuels and analyze if the tax has any impact on the use of fuels, which contain a high amount of carbon.

This paper will also seek to identify if the measures, put in place by states and governments, are functional and instrumental in curbing or reducing carbon dioxide emissions from industries and business establishments. It will also identify if carbon taxing provides the required solutions to economic and environmental challenges that transpire from the emission of carbon dioxide and greenhouse gases.

Conclusion

Tax imposed on the carbon content of fuels is one of the strategies devised by countries to reduce emissions of carbon dioxide and other greenhouse gases to the atmosphere. The strategy imposes some amount of tax on the content of carbon present in fossil fuel used by industries and business entities especially in developed countries.

The proposal discusses how states and governments can employ the strategy of carbon taxes to reduce emissions of carbon dioxide and minimize the negative effects that it causes. Governments usually charge a certain amount of the carbon tax on the content of carbon present in fuels. Therefore, this leads to an increase in the price of fossil fuels, yet many people, businesses, and industries rely on the fuel.

The increment discourages business entities, individuals, and industries from using the fuel and encourages them to look for alternative sources of energy so that they can reduce the overall cost of production.

Furthermore, when businesspersons, individuals, and industries shift from the use of fossil fuel that contains high carbon content, it lowers the emission of carbon dioxide and minimizes the negative effects of carbon dioxide. Overall, carbon taxing aims at protecting the environment from global warming caused by the emission and the accumulation of carbon oxide in the atmosphere.

References

Ekins, P. (2009). Carbon Energy Taxations: Lessons from Europe. London: Oxford University Press.

Hsu, S. (2012). Case for Carbon Tax: Getting Past Hangups’ to Effective Climate Policy. Washington : Island Press.

Jiang, X. (2012). Legal Issues for Implemementing Clean Development. Shangai: Springer, Publishers.

Karnosky, D. (2001). The Impact of Carbon Dioxide and Other Green House Gases on Foresty Ecosystem. New York: CABI Publishing.

Lungerfold, T. (2010). Cap and Trade: Kyoto Protocol: Greenhouse Gas. New York: The Capitolnet Publishers.

Miller, T. (2007). Living in the Enviroment: Principles Connections and Solutions. New York: Cancage Learning.

Tisdell, C. (2005). Economics of Environmental Conservation. London: Edward Elgar Publishing.

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IvyPanda. (2019) 'Carbon Energy Taxations '. 12 December.

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