Carbon tax
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Rm NZ tax from intro; it's covered later and since it was scrapped it doesn't warrant the lead coverage.
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A carbon tax is a tax on energy sources which emit carbon dioxide into the atmosphere. It is an example of a pollution tax, which has been proposed by economists as preferable because it taxes a "bad" rather than a "good" (such as income).
A carbon tax, because of the link with global warming, is often associated with some kind of internationally administered scheme; however, this is not intrinsic to the principle, and politically improbable. The European Union has discussed a carbon tax covering its member states, and has implemented a carbon emissions trading scheme, starting in January 2005.
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Aims
The purpose of a carbon tax is both financial (like all taxes) and environmental. It can be implemented by taxes on gasoline and on certain types of energy production, such as coal-fired power plants.
Special types of carbon taxes include:
- optimal carbon tax
- value-at-risk carbon tax
Implementation
On January 1, 1991, Sweden enacted a carbon tax, placing a tax of .25 SEK/kg ($100 per ton) on the use of oil, coal, natural gas, liquefied petroleum gas, petrol, and aviation fuel used in domestic travel. Industrial users paid half the rate (between 1993 and 1997, 25% of the rate), and certain high-energy industries such as commercial horticulture, mining, manufacturing and the pulp and paper industry were fully exempted from these new taxes. In 1997 the rate was raised to .365 SEK/kg ($150 per ton) of CO2 released.[1]
Finland, the Netherlands, and Norway also introduced carbon taxes in the 1990s.
In 2005 New Zealand proposed a carbon tax, setting an emissions price of NZ$15 per tonne of CO2-equivalent. The planned tax was scheduled to take effect from April 2007, and applied across most economic sectors but allowed a standing exemption for methane emissions from farming and provisions for special exemptions from carbon intensive businesses if they agree to adopt world's-best-practice standards of emissions. After the 2005 election, the minor parties supporting the Government opposed the proposed tax, and it was abandoned in December 2005. The Government said the tax would not be effective at reducing carbon emissions.
As President of the United States, Bill Clinton proposed a BTU tax that was not adopted. In April 2005, Paul Anderson, CEO and Chairman of Duke Energy, called for the introduction of a carbon tax.[2]
See also
External links
- Global taxes -- analysis by Global Policy Forum
- State Carbon Tax Model - downloadable (spreadsheet) modelja:炭素税