History of carbon regulations

Throughout the world many countries have been imposing a carbon tax. A carbon tax, as defined by carbontax.org, which is a website devoted to informing users about the taxation of carbon, is a fee that is imposed on the use of carbon based fuels. A carbon based fuel can be coal, oil and gas. As the Earth resources get more depleted and environmental concerns became more prevalent, the carbon tax has become more prevalent in society.

The United States has yet to impose a carbon tax. However, many countries already have, shown in the timeline below.  

1990: Finland imposed a carbon tax

1990: The Netherlands imposed a carbon tax

1991: Sweden imposed a carbon tax

1991: Norway imposed a carbon tax

1997: Costa Rica imposed a carbon tax

2002: Denmark imposed a carbon tax

2008: Switzerland imposed a carbon tax

2010: Ireland imposed a carbon tax

July 2010: India imposed a nationwide carbon tax

2012: Australia imposed a carbon tax

2012: Japan imposed a carbon tax  

2013: United Kingdom imposed a carbon tax

July 2014: Australia repealed the carbon tax

October 2014: Chile imposed a carbon tax

2017: China states they will impose a carbon tax

2017: South Africa imposed a carbon tax

(this list does not include all countries that imposed carbon tax)

This timeline shows the fast acceptance that the carbon tax has received over the years.

The diagram below shows countries that are thinking about or have implemented a carbon tax. Throughout the world, countries are considering the carbon tax, even countries that contribute to a majority of the emissions. In the U.S., it is shown that a majority of the nation is not considering a carbon tax but individual states are. Oregon is one of them!

 

Source: World Bank ("State and Trends of Carbon Pricing, 2016"). Note, ETS refers to emissions trading schemes (i.e., cap-and-trade).

Diagram 1:Global Carbon Tax (https://www.carbontax.org/where-carbon-is-taxed/)

 

Australia and the Carbon Tax:

As seen from the timeline above, Australia enacted and then repealed a carbon tax. Australia first enacted the carbon tax in 2012 because they wanted take action in order to  help the environment. However, after it was implemented, it was seen as something that would hurt small business. Instead of being about the environment and greenhouse emissions, the law became focused on politicians. All the politicians took sides and since carbon tax was such a hot topic, the politicians’ careers were staked in carbon tax. As a result, the repeal of the carbon tax was mainly about the career of the politicians than the Australian people and environment.

 

United Kingdom and the Carbon Tax:

In the United Kingdom they implemented a carbon tax in 2013. As shown in the graph below there has been a steady decline in greenhouse gas emissions in the UK after the start of the carbon tax. The graph states that just from 2015 to 2016 there has been a 6% drop. The carbon tax in the UK has shown great improvements and exhibited its effectiveness.

Diagram 2:UK: greenhouse gas emissions (https://www.carbontax.org/where-carbon-is-taxed/)

United States and the Carbon Tax:

In the United States there is no nationwide carbon tax. For many years legislators have tried to establish a carbon tax. One of the main reasons the bills have not been passed, is people believe it will lead to higher unemployment rates. However in recent years the carbon tax has gotten more attention at the national and state level. The election of Trump has left many unknowns, but at this time Trump is not considering a nation-wide tax.

Oregon and the Carbon Tax

As shown in the graph below, at the state level many have considered a carbon tax. Here in Oregon or even Eugene, there has been a lot of debate about having a carbon tax. Many bills have been proposed about having some type of cap on carbon emission and having a tax once that cap is passed. Some of the concerns of these bills being passed is how they would affect Oregon businesses. If at state levels carbon taxes were to be implemented it can lead to the a nation-wide carbon tax.

 

Diagram 3:Opportunities for Carbon Taxes at the State Level (https://www.carbontax.org/states/)

References:

1.) Na. Na. Where is Carbon Taxed. https://www.carbontax.org/where-carbon-is-taxed/

2.) Krayden, David. Trudeau to Force Carbon Tax on Every Canadian Province. http://dailycaller.com/2017/05/19/trudeau-to-force-carbon-tax-on-every-canadian-province/

3.) Na. December 8, 2016. Factbox: Carbon Taxes and Emission Trading Schemes Around the World. http://www.sbs.com.au/news/article/2016/12/08/factbox-carbon-taxes-and-emission-trading-schemes-around-world

4.) Na. Na. Pricing Carbon. http://www.worldbank.org/en/programs/pricing-carbon

5.) Krugel, Lauren. June 11, 2016. No ‘Plausible Denial’ Anymore: Big Oil Pushes For Carbon Tax. http://www.huffingtonpost.ca/2015/06/11/bil-oils-push-for-a-carb_n_7562260.html

6.) Harvey, Chelsea. November 10, 2015. These Could be the First U.S. States to Tax Carbon – and Give Their Residents a Nice Paycheck. https://www.washingtonpost.com/news/energy-environment/wp/2015/11/10/these-could-be-the-first-u-s-states-to-tax-carbon-and-give-their-residents-a-nice-paycheck/?utm_term=.51cb92de7d5c

7.)Flavelle, Christopher. April 20, 2017. Carbon Taxes Gain Conservative Followers. https://www.bloomberg.com/news/articles/2017-04-20/carbon-taxes-gain-conservative-followers

8.) Baird, Julia. July 24, 2014. A Carbon Tax’s Ignoble End. https://www.nytimes.com/2014/07/25/opinion/julia-baird-why-tony-abbott-axed-australias-carbon-tax.html

9.) Profeta, Tim. March 23, 2017. Carbon Tax Not on Agenda For Trump. http://voices.nationalgeographic.com/2017/03/23/carbon-tax-not-on-agenda-for-trump/

10.) Profita, Cassandra. March 1, 2017. Carbon Tax? Cap and Trade? Oregon Lawmakers Weigh Options for Reducing Emissions. http://www.opb.org/news/article/oregon-lawmakers-weigh-two-options-for-reducing-carbon-emissions/

 

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