One of the most efficient political tool to reduce Carbon Emission in Sweden has been the Carbon Tax. Many other countries are now looking at political efficiency and trying to find smart progressive solutions that will have a support from the citizens and also businesses.
The market oriented tool Cap and Trade can very well work together with a Carbon Tax but it is still issues to be solved that have to be solved to be accepted by all stakeholders.
In Singapore, talk of a carbon tax surfaced late last year, when Prime Minister Lee Hsien Loong said that a price on carbon would be introduced here should there be a global climate change deal. This could be a tax on the carbon content of fuels, or a cap-and-trade system that caps the amount certain industries can pollute, beyond which companies pay extra. If they pollute less, they gain carbon credits which can then be sold, contributing to the company’s profits.
A working group is reportedly studying the possible introduction of such a carbon scheme and its cost impact on households and industries, with its report expected to be completed within the next few months. Read more the article
The Reality Of Carbon Taxes In The 21st Century is the name of a book published in Jan 2009 by a team at Vermont Law School’s Environmental Tax Policy Institute headed by longtime environmental-taxation scholar Janet E. Milne.
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