Home > B1, Learning > Revenue Neutral Carbon Taxing

Revenue Neutral Carbon Taxing

ImageIn economics this trimester, we discussed the idea of a revenue neutral carbon taxation and while I think the goal of the idea, to have less pollution in the environment is a very noble one, I do not think this is the best way to go about reaching the goal. Climate change is a real problem caused partially by carbon usage and in trying to do our part to lessen that effect, we thought of revenue neutral carbon taxing. According to the province of British Columbia, which has implemented such a policy, this is a situation in which, better alternatives to coal will be made cheaper and the tax on coal will be made higher. The idea is that this will promote usage of materials that are better for the environment without affecting people’s personal revenues.

While the concept behind this idea is very intelligent, I think it has one fatal flaw, the fact that it is revenue neutral. Anything that is revenue neutral has no affect on the amount of money a person can spend and therefore no effect on the environment. Yes, many people would see the money saving advantage of switching to more efficient methods, however, I feel some would understand the fact that not doing anything does not make them worse off and not change their ways.Button+-+No+Carbon+Tax

I think we do need to do something to help us reduce carbon consumption in America and this idea is definitely on the right track, however, it may not be enough to get us all the way to where we want to be. We might need to consider either combining this method with others or using a different method entirely. My feeling is that many people in America will not feel affected by this policy change if it is revenue neutral because that means there are no negative consequences should someone fail to try to consume less carbon.

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  1. February 5, 2014 at 7:08 am

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