The issue of carbon tax

Document Type:Essay

Subject Area:Philosophy

Document 1

As a result of this, carbon tax is one of the largest initiatives started by the government of Canada. This issue is about taxing carbon emission in attempts to deal with the problem of climate change. In 2018, Canada is planning to ensure that national price of carbon has been imposed. The starting price will be at least ten Canadian dollars per tonne of carbon (IV) oxide. This will increase by a value of $10 per tonne each year and by 2022, the price of a tonne of carbon will be $50 (Rabe & Borick, 2012). Carbon tax is meant to cut down emitted greenhouse gases by a value of about 30 percent before 2030. Initiating the carbon tax means that every person taking part in actions adding carbon (IV) oxide to the environment will be responsible for his/her actions. A fuel company for instance will pay prices depending on the amount of Carbon (IV) oxide they add into the environment (Meng et al, 2013). Even with the good plans that the idea has, it has attracted a lot of criticism resulting into a heated debate. In this piece of work, I will present a discussion through which I will look at the pros and also the cons of introducing the carbon tax initiative in Canada. However, my stand is that carbon taxation will make people accountable for polluting the atmosphere with carbon emissions which in turn will reduce pollution. Conservation of the environment is the biggest advantage that comes along with the introduction of carbon tax initiative (Meng et al, 2013).

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The initiative is started to ensure that organizations or companies that release huge amounts of Carbon (IV) Oxide have reduced their levels of production. For those who are not willing to lower production, the initiative will make sure that such companies have been pushed to do away with whatever they are producing. Elimination of emissions is another alternative that companies will have to choose from. In doing so, pollution of the environment which is largely brought about by greenhouse gases will have been reduced. Continued pollution by greenhouse gases leads to global warming and thus imposing carbon taxes will help prevent the harmful effects associated with it (Speck, 2013). By making companies and also people pay for their carbon emissions, it will reduce emissions. People will reduce their emissions to evade the tax.

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Since everybody will be taking part in initiative, the levels of damage that the environment is facing at the moment will end up being lowered, thus giving a way for a possible healing. Alternatively, they improve on the ideas of cars that are powered by solar power. The advantage of this is that people will be able to come up with environment friendly ideas in fields ranging from logistics to agriculture (Rabe & Borick, 2012). The ideas will be driven by the avoidance to depend on carbon in any of their operations. For everyone concerned with the idea, transition from carbon to other alternatives will be easy. Even though electricity is a cleaner alternative, its generation is currently relying largely on fossil fuels and nuclear power. The revenue generated could also encourage the start of a green movement that will come along with a lot of positive impact to the society (Bowen, 2015).

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Activities of the green movement will include pushing for the production of green energy so as to replace sources of energy that are not friendly to the environment. The revenue generated could also be used in activities such as repairing damages brought about by natural disasters or pollution. In such ways, the environment will have been conserved. Initiation of such practices will however require a body that will be handling revenue generated through this process. Instead of companies adjusting themselves to fit the demands posed by the carbon tax initiative, some of them will consider moving their businesses or production to places where carbon taxes are lower or where there are no taxes at all (Martin et al, 2014). Arguing from a business point of view, this will be a good alternative due to the fact that looking for alternatives may demand huge costs compared to shifting the company to a different location.

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This will be the case for those companies that will still work normally even when their location has been changed. It will also work well for the big companies that have already established themselves as they will still move away with many of their customers. For starting business that had acquired some customers, a shift will not be an option as it will take long for the business to grow in the new region (Wang et al, 2016). The opposite of this is also true and lack of enough funds will prevent the initiative from being put into action. If this is not the case, then the rule will be ineffective and of no use due to the fact that very large sums of money are initially required for full operation of the initiative.

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For Canada to have the amount of funds required for the initiative to start working, it may be forced to increase the amount of taxes for its citizens (Kim et al, 2010). This will be giving people a burden that they were not having in the first place. Another alternative will be borrowing money from outside in order to fund the program. Looking at the current state of the initiative, it is not easy to run the program effectively and thus it requires more effort, time and money. A very big reason for not starting the carbon tax initiative is that it may end up promoting covert operations in Canada. Not only in Canada, this is something that could have happened in any country where the government attempts to start such a type of an initiative.

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With the start of the carbon tax initiative, companies will be forced to start looking for tricks that will help them evade the tax. This will comprise of tricks aimed at fooling the system as well as covert strategies to help the affected company stay away from the taxes (Martin et al, 2014). Carbon tax will help control this and hence it is the best alternative through which the problem of climate change can be controlled (Meng et al, 2013). The issue of climate is more important than the cost that comes with the initiative. Although it may cost the government as well as the people, its of paramount importance to conserve the environment. Almost everything in the world depends on climate and thus destroying it will have a huge cost compared to carbon tax.

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References Bowen, A. B. Impact of carbon cost on wholesale electricity price: a note on price pass-through issues.  Energy, 35(8), 3441-3448. Marron, D. B.  Journal of Public Economics, 117, 1-14. Meng, S. Siriwardana, M. McNeill, J. The environmental and economic impact of the carbon tax in Australia. Wang, Q. Hubacek, K. Feng, K. Wei, Y. M.

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