Option 1: Recycling or redistributing the revenues collected from…
Question Answered step-by-step Option 1: Recycling or redistributing the revenues collected from… Option 1: Recycling or redistributing the revenues collected from carbon pricing and carbon taxes. Guiding questions and essential and optional source material: Very briefly remind the reader, that the costs of carbon pricing are disproportionately borne by poorer groups and that carbon taxes are effectively regressive. Consider at least TWO carbon price revenue recycling policies or proposals that are designed to compensate for the social and economically regressive effects of carbon pricing. In each case, explain the aims of the policy. How it is supposed to operate? (Examples in the essential and optional readings listed below include subsidizing renewable energy for poorer households, re-training those who have lost jobs in carbon intensive industries, expanding social welfare programs and means-tested, lump sum payments and “Green New Deal” type schemes training and employing people in publicly funded climate mitigation and adaptation activities.Another key carbon recycling policy focuses on using carbon price revenue collected in relatively rich or middle income countries to subsidize projects in developing countries the reasoning here is that it is groups in poorer countries who are most affected by climate change while also being the lowest emitters. Assess the importance of this carbon recycling option in the context of climate justice. (See Fujimoro et al 2020, pages 7-8)Critically analyse your chosen policies or proposals. How effective are they likely to be at climate mitigation and adaptation? How effective are they likely to be at addressing the effects of climate change and climate policies on poverty and inequality?Do these policies have other significant advantages and disadvantages?If possible, provide evidence of refer to case studies.When critically analysing your chosen policies it is important to remember that if carbon pricing works as intended then the revenue it raises is short term only. In other words, as emissions gradually fall, there is less carbon tax collected and carbon prices should substantially fall. This is something that a good carbon price recycling policy should keep in mind. The policy may be designed to have long-term effects, however it cannot assume that the source of funding will last into the very long term (unless placed in a suitable investment pool.) Essential readings for Option 1: Fujimoro et al (2020) pages 6-9.Carbon Pricing Leadership Coalition (2016) “What are the options for using carbon pricing revenues?” Marron and Morris 2016. How to use carbon tax revenues Business Economics Environmental Economics BUSINESS 200815 Share QuestionEmailCopy link Comments (0)
