Steve Cap and trade legislation is one of those things that is almost always about to happen. Frequently this debate can go over the ears of the average citizen, and it may be helpful to explain this important legislation in terms of the benefits and costs associated with it. This paper will provide a description of cap and trade, why cap and trade is desired, some examples of it worldwide, alternatives to cap and trade, and then explain both the pros and the cons of its implementation. In the end, a comprehensive summary will arrive at the conclusion that cap and trade may be the best option for reducing greenhouse gas emissions, given the high cost of alternatives, the efficiency of the cap and trade system, and the success of this system in the past.
Salary 8 Advantages and Disadvantages of the Carbon Tax It is widely believed that the release of carbon dioxide is the main contributor to social and environmental problems, particularly global warming.
This type of pollution is deemed as a negative externality, which is a cost imposed on the entire society and not just the certain individuals who are using or consuming polluting products, such as cars. And because certain carbon-intensive industries are creating negative externalities, the social cost of production should be greater than that of the private entities.
Now, the carbon tax is employed to internalize such an externality, which means that the final price of goods should include the external and not just the private cost. Theoretically speaking, this tax should be equal to the external cost. At this output, the marginal social cost should be equal to the marginal social benefit, making the demand to fall and the new equilibrium to be socially efficient.
Withal the positive intentions that this type of tax carries, its idea still has garnered some criticisms, leading to some heated debates around the world. To come up with a good opinion about this subject matter on our end, it is best to look at its pros and cons.
List of Advantages of Carbon Tax 1. It encourages people to find alternative resources. With the carbon tax causing increases in business overheads, companies will be prompted to find more efficient ways to manufacture their products or deliver their services, as it would be beneficial to their bottom line.
This would be very helpful by the time the post-oil economy arrives, as it would make transition a lot faster and easier for those who are involved. Instead of relying heavily on fossil fuels and nuclear power, electricity would be generated from alternative sources, which are more eco-friendly and less polluting.
Aside from these, the tax would also encourage people to cycle or walk to work, promoting a healthy lifestyle. It helps with environmental conservation. The main objective of the conception of the carbon tax is to make sure those organizations and companies that emit large amounts of carbon dioxide CO2 will reduce, if not eliminate, their emissions, which minimizes pollution and the impact of global warming.
When everyone would take part in this noble cause, the damage had by the environment at this moment can be addressed, paving the way for possible recovery.
As a result, the environment is expected to last longer, and we would still have our planet to live in for the thousands of years. It promotes socially efficient income. Take note that that both businesses and individuals will be paying the social cost of excess carbon dioxide through the carbon tax, which entails that they would be more socially aware of what emissions could mean to businesses and the world.
This would prompt them to switch to means of gaining income that are socially efficient. It helps increase revenue.
The same revenue can be spent on repairing any damage caused by natural disasters and pollution. List of Disadvantages of Carbon Tax 1.
It imposes expensive administration costs. The carbon tax can be really expensive, considering that the government would need a substantial amount of money for its implementation. Plus, it is stated to be often difficult to determine the actual external cost and the tax amount that must be imposed, which requires more time, effort and money as well.Advantages And Disadvantages Of Carbon Emission Scheme.
additional CO2 is the burning of fossil fuels.
There is a common consensus that global warming is an effect of increased carbon emission and only a few groups still hold on to the belief that there is no connection between emissions of greenhouse gases (Carbon) with the effect of global warming.
May 01, · Advantages & Disadvantages of Emission trading schemes to reduce carbon pollution in the environment?
I think one of the disadvanatages would be if the company has more money, that means indirectly they are able to pollute the environment more by Status: Resolved.
May 01, · Advantages & Disadvantages of Emission trading schemes to reduce carbon pollution in the environment? I think one of the disadvanatages would be if the company has more money, that means indirectly they are able to pollute the environment more by Status: Resolved.
What are the main cons of emissions trading at present? Update Cancel. ad by My Clean PC. PC running slow? Speed up your computer in minutes. (Emissions Trading Scheme). The allocation for this assumed straight line emission reductions based on straight line future economic growth.
Which emissions, carbon emissions or greenhouse gas. Carbon taxes and cap-and-trade programs share several major advantages over alternative policies.
Both reduce emissions by encouraging the lowest-cost emissions reductions, and they do so without anyone needing to know beforehand when and where these emissions reductions will occur. This means the price of emissions is below the level it needs to be to generate real action on emissions.
The problem is that the allocation of emissions allowances remains in the hands of politicians and is not driven by climate science (in accurate but real, as it is).