The article in the url below suggests that a carbon tax will not necessarily lead to a reduction in carbon emissions:
“In 1991, Norway became one of the first countries in the world to impose a stiff tax on harmful greenhouse gas emissions. Since then, the country's emissions should have dropped. Instead, they have risen by 15%.”
The argument extends to the example of Europe’s cap-and-trade market for carbon credits:
“Regulators cushioned industry in the early years of the system, giving them little incentive to improve. As a result, emissions have crept up 1% a year since 2005. In the U.S., the Senate voted down cap-and-trade legislation in July, won over by arguments that the system would hurt industry and boost consumer prices.”
These examples are countered with the experiences of Sweden and Denmark, “both of which introduced a carbon tax, have reduced their greenhouse gas emissions by 14% and 8% respectively since 1990 while maintaining growth,” although this progress occurred in conjunction with other carbon reduction policies.
While the article makes clear that Norway’s efforts mean that the country’s level of emissions is significantly below what they would otherwise have been, it also points out that reversing emissions growth at a macro level will require much more radical efforts than have so far been attempted:
“Norwegians are used to paying high prices at the pump: a gallon of gasoline costs around $9 to $10, and about 6% of the price comes from the carbon tax. Yet since two-thirds of Norwegians live in the countryside, they pay up and keep driving.”
Have a good weekend.
Dave
Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
Currents -- Environment: An Exhausting War on Emissions --- Norway's Efforts to Contain Greenhouse Gases Move Forward -- and Backfire
By Leila Abboud
1419 words
30 September 2008
The Wall Street Journal
A15
http://online.wsj.com/article/SB122272533893187737.html
