• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Advertisement
  • Home
  • Economy
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Law & Policy
  • History
No Result
View All Result
  • Home
  • Economy
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Law & Policy
  • History
No Result
View All Result
  • 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
JournalsOfIndia
No Result
View All Result
Home Environment

Carbon Tax

September 28, 2020
in Environment
Reading Time: 3min read
0
Carbon Tax
97
VIEWS
Share on TelegramShare on Facebook

Emissions of carbon dioxide and other greenhouse gases are changing the climate. A carbon tax puts a price on those emissions, encouraging people, businesses, and governments to produce less of them. Deterring the burning of fossil fuels is crucial to reducing the accumulation of heat-trapping greenhouse gases in the earth’s atmosphere.

More About Carbon Tax

  • Carbon taxes, levied on coal, oil products, and natural gas in proportion to their carbon content, can be collected from fuel suppliers.
  • They in turn will pass on the tax in the form of higher prices for electricity, gasoline, heating oil, and so on, as well as for the products and services that depend on them. 
  • This provides incentives for producers and consumers alike to reduce energy use and shift to lower-carbon fuels or renewable energy sources through investment or behavior.
  • They can also raise significant revenue for governments, revenue that can be used to counteract economic harm caused by higher fuel prices.
  • Carbon taxes are generally straightforward to administer because they can be piggybacked on existing fuel taxes, which most countries already collect with ease.
  • It is also possible to integrate carbon taxes into the royalties paid by coal mining and oil and gas drilling industries. 
  • Carbon taxes can play a key role in achieving countries’ pledges under the 2015 Paris Agreement, which lays the foundation for international action to combat global warming.

Carbon Tax in India

  • The decision of the current government to increase fuel taxes as well as quadruple the coal cess is sometimes interpreted as a variant of a carbon tax. 
  • Only a third of the sharp decline in global oil prices after 2014 was passed on to consumers.
  • However, steep price hike due to carbon tax may make such a tax a political issue, especially in a developing country like India, where on the one hand politically influential groups such as the urban middle class or rich farmers are the biggest consumers of energy, and on the other, people emerging out of poverty need access to cheap electricity and fuels.
  • The government in India, until recently, has not put in place a carbon tax or cap in the trade system. However, leading Indian companies have set up their own carbon pricing mechanisms following a three-phase process:

. In the foundational phase, a company assesses how much carbon it is emitting through greenhouse gas inventories. 

. In the next phase, the company sets its green vision and identifies an ideal carbon pricing strategy to achieve it. Several pricing approaches are possible including shadow prices, taxes or fees, cap-and-trade and implicit carbon pricing. 

. Finally, in the roll out phase, the company operationalizes its scheme and sets in place a system to track its effectiveness.

  • 40 large Indian companies have priced or are planning to price carbon. Combined, their revenue exceeds $7 trillion. 
  • The Indian government’s budget for 2020-2021 includes preliminary plans for some form of environmental taxation.
Source: The Hindu, IMF website
Tags: Prelims

Related Posts

Dragon Fruit

Dragon Fruit

January 22, 2021
UNESCO Global Geoparks

UNESCO Global Geoparks

January 21, 2021
National Policy on Faecal Sludge and Septage Management (FSSM)

National Policy on Faecal Sludge and Septage Management (FSSM)

January 21, 2021
Integrated Waste to Energy Plant

Integrated Waste to Energy Plant

January 20, 2021
Effect of Changing Groundwater Levels on Himalayans (Himalayan Slip)

Effect of Changing Groundwater Levels on Himalayans (Himalayan Slip)

January 19, 2021
Mealworms for Human consumption

Mealworms for Human consumption

January 19, 2021
Saksham (Sanrakshan Kshamata Mahotsav) 2021

Saksham (Sanrakshan Kshamata Mahotsav) 2021

January 19, 2021
International Solar Alliance (ISA)

International Solar Alliance (ISA)

January 18, 2021
Action Plan Improving Air Quality

Action Plan Improving Air Quality

January 18, 2021
Microbial Decomposer Capsule

Microbial Decomposer Capsule

January 18, 2021
Please login to join discussion

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society

Browse by Tags

AIR Big Picture GS-1 GS-2 GS-3 GS-4 Kurukshetra Mains News Paper PIB Prelims RSTV Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society

Browse by Tag

AIR Big Picture GS-1 GS-2 GS-3 GS-4 Kurukshetra Mains News Paper PIB Prelims RSTV Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • Prelims Snippets
  • Mains Articles
  • Economy
  • Society
  • Foreign Affairs
  • Science & Tech
  • Environment
  • Agriculture
  • History
  • Law & Policy
  • Security
  • Course Portal
  • Prelims Test Portal
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In