scholarly journals Setting a price for carbon for implementing a carbon tax or a cap and trade system for controlling carbon dioxide emissions

2019 ◽  
Author(s):  
Wenfa Ng
Keyword(s):  
Carbon Dioxide ◽  
Environmental Economics ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
Local Economy ◽  
Cap And Trade ◽  
Trading System ◽  
Demand And Supply ◽  
Goods And Services ◽  
Supply Shock

Carbon tax and cap and trade are two main policy tools for market-based mechanisms aimed at curbing carbon dioxide emissions. But, their implementation requires a careful calibration of the price of carbon, on which a carbon tax is levied, or which helps price carbon credits in an emissions trading system. Hence, setting a price on carbon, tuned to the fundamentals of the local economy, is a profound question in environmental economics, important for benchmarking the price of many goods and services dependent on fossil fuel energy for material input or function. One approach to setting a price on carbon is to progressively increase the price of carbon through regulatory statute from an initial low price. This would help industries and the economy to gradually adapt to a marketplace where there is an additional regulatory price on carbon in addition to a material and services price. On the other hand, a one-off approach at setting the final price of carbon in the economy may deliver a severe demand and supply shock, which may have repercussions beyond businesses needing to factor the price of carbon in their economic calculus. Thus, whether a progressive price increase in carbon or setting the final price, pricing carbon is a delicate economic issue with significant implications for the functioning of an economy choosing either the carbon tax or cap and trade system for regulating carbon dioxide emissions.

scholarly journals Setting a price for carbon for implementing a carbon tax or a cap and trade system for controlling carbon dioxide emissions

2019 ◽  
Author(s):  
Wenfa Ng
Keyword(s):  
Carbon Dioxide ◽  
Environmental Economics ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
Local Economy ◽  
Cap And Trade ◽  
Trading System ◽  
Demand And Supply ◽  
Goods And Services ◽  
Supply Shock

Carbon tax and cap and trade are two main policy tools for market-based mechanisms aimed at curbing carbon dioxide emissions. But, their implementation requires a careful calibration of the price of carbon, on which a carbon tax is levied, or which helps price carbon credits in an emissions trading system. Hence, setting a price on carbon, tuned to the fundamentals of the local economy, is a profound question in environmental economics, important for benchmarking the price of many goods and services dependent on fossil fuel energy for material input or function. One approach to setting a price on carbon is to progressively increase the price of carbon through regulatory statute from an initial low price. This would help industries and the economy to gradually adapt to a marketplace where there is an additional regulatory price on carbon in addition to a material and services price. On the other hand, a one-off approach at setting the final price of carbon in the economy may deliver a severe demand and supply shock, which may have repercussions beyond businesses needing to factor the price of carbon in their economic calculus. Thus, whether a progressive price increase in carbon or setting the final price, pricing carbon is a delicate economic issue with significant implications for the functioning of an economy choosing either the carbon tax or cap and trade system for regulating carbon dioxide emissions.

So You Want a Carbon Tax: How Do You Design It?

2019 ◽  
pp. 99-114
Author(s):  
Gilbert E. Metcalf
Keyword(s):  
United States ◽  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
The United States ◽  
Global Trade ◽  
Design Features ◽  
Practical Advice ◽  
Traded Goods ◽  
The Government

This chapter reviews the nuts and bolts of implementing a carbon tax. Invoking principles of administrative simplicity, ease of compliance, and avoidance of design features that dilute the price signal, it gives practical advice on who should be responsible for collecting the tax and remitting it to the government. It explains how the tax should handle the possibility that we can capture and permanently store carbon dioxide emissions and how we should tax emissions related to internationally traded goods so the United States is not disadvantaged in global trade. Finally, it identifies, and warns policymakers away from, various pitfalls in carbon tax design.

China’s New National Carbon Market

2018 ◽  
Vol 108 ◽  
pp. 463-467 ◽  
Author(s):  
William A. Pizer ◽  
Xiliang Zhang
Keyword(s):  
United States ◽  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Emissions Trading ◽  
The United States ◽  
Carbon Market ◽  
Trading System ◽  
Pilot Programs ◽  
Tradable Permit ◽  
Emissions Trading System

On December 19, 2017, China announced the official start of its national emissions trading system (ETS) construction program. When fully implemented, this program will more than double the volume of worldwide carbon dioxide emissions covered by either tax or tradable permit policy. Many of program's design features reflect those of China's pilot programs but differ from those of most emissions trading programs in the United States and Europe. This paper explains the context and design of China's new carbon market, discusses implications and possible modifications, and suggests topics for further research.

Design on Carbon Tax Model and its Simulation Results Analysis

2014 ◽  
Vol 675-677 ◽  
pp. 1727-1730
Author(s):  
Wei Lv
Keyword(s):  
Carbon Dioxide ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
Minimum Cost ◽  
Main Role ◽  
Tax System ◽  
Fossil Energy ◽  
Simulation Results ◽  
The Right ◽  
Energy Companies

The carbon tax is levied on carbon dioxide emissions, its main role is to inhibit the use of fossil energy companies are. In this thesis, a carbon tax model, and the model of the simulation study, the researchers showed that a carbon tax can give companies the right to choose freely choose the way to cut emissions of carbon tax system. Such a system would encourage enterprises to adopt minimum cost level of output to produce.

scholarly journals Analysis of Carbon Tax on Selected European Countries: Does Carbon Tax Reduce Emissions?

2017 ◽  
Vol 5 (1) ◽  
pp. 29
Author(s):  
Ali Eren Alper
Keyword(s):  
Carbon Dioxide ◽  
Global Warming ◽  
Natural Gas ◽  
Carbon Dioxide Emissions ◽  
Fossil Fuels ◽  
Carbon Tax ◽  
Panel Data Analysis ◽  
Rapid Development ◽  
European Countries ◽  
Environmental Taxes

Since the first days of its existence, the humanity had been using natural resources to meet its needs. Especially along with the globalization period as a result of the Industrial Revolution and the rapid development of communication technologies within the last fifty years, the production has increased significantly in the world and has created negative effects on the environment. The leading adverse effects involve the emission of greenhouse gases and the global warming, which stem from the energy supply of fossil fuels as the main inputs of production. The global warming can be described as an increase in temperature worldwide. Irreversibility is the most important feature of the global warming. Therefore, in the absence of objective measures, the future costs would be much higher than the current ones. For this reason, governments need to take various measures to reduce the volume of emissions. The most important of these measures is carbon taxes. Carbon taxation encourages individuals to use fewer fossil fuels and to find new sources of energy by increasing the cost of using fossil fuels that cause carbon dioxide emissions through the price mechanism. To this end, the impacts of carbon tax levied in 18 selected European countries on economic growth, urbanization, natural gas and petroleum usage, and CO2 emissions are examined by panel data analysis for the 1995-2015 period. The analysis results indicate that a 1% increase in environmental taxes reduces carbon dioxide emissions by 0.9%. Furthermore, it is reported that a 1% increase in natural gas and petroleum consumption among the variables included in the analysis increased carbon dioxide emissions by 0.1% and 0.7%, respectively; while a 1% increase in urbanization reduced carbon dioxide emissions by 0.9%.

scholarly journals The International Influence of the Emissions Trading System in Mexico

2021 ◽  
pp. 91-107
Author(s):  
Alicia Gutierrez González
Keyword(s):  
Climate Change ◽  
Carbon Dioxide Emissions ◽  
Emissions Trading ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Learning By Doing ◽  
The European Union ◽  
Trading System ◽  
Reduce Carbon Dioxide ◽  
Emissions Trading System

AbstractThis article aims to give an overview of the international influence of the Emissions Trading System (ETS) in Mexico. It is divided into three parts. First, it briefly examines both the international Climate Change regime through the description of such instruments as the 1997 Kyoto Protocol and the 2015 Paris Agreement, and the national regime by reviewing as the 2012 General Law on Climate Change (LGCC), the National Emissions Registry (RENE) and its Regulations, as well as other instruments regarding mitigation from carbon tax and clean energy. Second, it analyzes the legal framework of the pilot phase of the ETS in Mexico (under the cap and trade principle) which seeks to reduce carbon dioxide emissions (CO2) only in the energy and industry sectors whose emissions are greater than 100 thousand direct tonnes of CO2. In doing so, it also explains the relevance of implementing an ETS as a cost-effective mitigation measure to achieve the Nationally Determined Contributions (NDCs) in order to reduce 22% greenhouse gas (GHG) emissions by 2030 (increasing to 36% if there is international support and financing) and 50% by 2050 as a developing country. Third, it focuses on the European Union Emissions Trading System (EU ETS) experience and shows that all its phases must be done gradually by adopting the learning-by-doing approach.

Reflections on Carbon Tax on Way to Carbon Dioxide Emissions

2011 ◽  
Vol 393-395 ◽  
pp. 1385-1388
Author(s):  
Xiao Yan Zhang ◽  
Yan Lei Qiu ◽  
Pei Long Shen
Keyword(s):  
Carbon Dioxide ◽  
Greenhouse Gases ◽  
Carbon Dioxide Emissions ◽  
Carbon Tax ◽  
Hot Spot ◽  
Carbon Dioxide Emission ◽  
Environmental Issues ◽  
Global Environment ◽  
Current Implementation

Carbon dioxide is one of the most important greenhouse gases which have caused the global warm. Reducing greenhouse gases, especially carbon dioxide emission, has become the hot spot of environmental issues in the current society of international world. Based on the analysis of carbon dioxide emissions in the global environment and the present introduction of carbon tax as a tool for reducing carbon dioxide emissions, the paper, on a unique perspective, compared some related conceptions in deep and analyzed the principle of the means in reducing carbon dioxide from the perspective of macro and micro. Finally, the paper gave the conclusion of China's carbon tax in the current implementation of specific measures.

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