C02 Taxation

11 avril 2010

Introduction to Carbon Tax

To watch the video : click here

A carbon tax is an environmental tax on emissions of carbon dioxide, a gas responsible for the greenhouse effect, in order to control global warming. Its aim is to discourage the polluting emissions by taxing proportionally those who pollute our air. The tax increases the final price proportionally to the emissions done by their production. This tax has also been made to help companies producing ‘clean’ goods.

The Kyoto Protocol has been the starting point of the setting of the carbon tax. It has been primary settled in 1997 and was implemented in February 2005. Under the protocol, 37 industrialized countries have agreed to reduce their emissions of four greenhouse gases, and among them is the carbon dioxide. The countries agreed to reduce their collective greenhouse gas emissions by 5, 2% (from the 1990 level).

The carbon tax is a solution offered to the countries who agree to reduce their greenhouse gas emissions. The tax can be applied to the final products or more commonly to their production or their importation of fossil energy which will consume carbon dioxide when it is used.

The carbon tax is complementary to the principle of quotas of emissions. The tax imposes a fixed price to free quantity, whereas the quotas impose quantities and let the price be variable. Both systems exist, but the tax enables to regulate a large number of small issues initially hard to regulate with quotas.

· Team members :

Thanks to this team we have learned more about Carbon Tax:

Florence D, Lucie L, Julie L, Clotilde R.

· Bibliography for curious people

If you are curious and if you want to go further on this subject have a look to these links.