Carbon Tax

Carbon tax is a taxation method that converts the environmental costs caused by carbon dioxide emissions into production and operation costs. According to World Bank statistics, as of June 2020, more than 30 countries and regions have implemented carbon tax policies, covering developed and developing countries across all continents, covering a total of 30 billion tons of carbon dioxide emissions. In addition, among the 185 parties to the Paris Agreement that have established nationally determined contributions, 97 parties have proposed that they are planning to use or consider using carbon taxes and carbon emission trading to fulfill their nationally determined contribution commitments.

Carbon tax mainly has the following advantages: First, it takes effect quickly, can directly increase the cost of greenhouse gas emissions, quickly squeeze the profit margins of resource-intensive enterprises, and force them to adopt energy-saving and emission-reduction measures or limit heating, and achieve substantial reductions in a short period of time. Row. The second is the low cost of implementation, mainly relying on the existing taxation system for implementation, without the need to set up new institutions, and do not need to consider issues such as supporting infrastructure. Third, the tax rate is stable, forming a stable carbon price expected guideline, and companies can arrange mid- and long-term emission reduction plans. Fourth, the redistribution of income can be realized. The government can use carbon tax revenue for green project construction or new energy technology research and development to support low-carbon transition. However, we need to realize that the carbon tax is insufficient to control the total amount of carbon emissions. If the carbon tax rate is relatively low, high-emission, high-yield companies can maintain their original production and business models, and their willingness to reduce emissions is low.

Due to differences in economic structure, emission reduction targets, etc., the development of carbon tax in various countries is quite different, but in practice there are still commonalities, which are mainly reflected in the tax system design, tax base, tax rate, tax use, and implementation of carbon tax. Effects and other aspects.