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Regional Energy Policies, Trade and Energy Security in South Asia
Published in Muhammad Asif, Handbook of Energy Transitions, 2023
Mabroor Hassan, Manzoor Khan Afridi, Muhammad Irfan Khan
The energy trade may have to deal with two types of taxes including the tax on energy trade and a carbon tax. The tax on energy trade could be a potential source of revenue generation. SAARC Framework Agreement on Energy Cooperation decree duties and taxes (Article 4), the essence of trade duty, fees, and levies exemption on cross-border energy trade. The experts allotted significance ranking (68) to tax (C11). The South Asian countries riveted on tax on trade as a source of revenue but contempt the carbon tax. However, the existing ranking of tax is comparatively better in alternative and renewable energy policies due to tax rebates on the import of ARE technologies (Figures 22.4 and 22.5). There is a need to mediate a clear tax ratio and direction to facilitate regional energy trade. Furthermore, a carbon tax can promote renewable energy, decrease emissions, mitigate climate change, and environmental security. The economic criteria narrated the different values of Pearson’s correlation between significance ranking and existing ranking (Tables 22.3 and 22.4).
Implementing Successful Carbon Reduction Programs
Published in Stephen A. Roosa, Arun G. Jhaveri, Carbon Reduction:, 2020
Stephen A. Roosa, Arun G. Jhaveri
For clarification, a carbon tax is a levy on the carbon content of fossil fuels, providing economic disincentives for using fuels such as coal and oil. Since virtually all of the carbon in fossil fuels is ultimately emitted as CO2, a carbon tax is equivalent to an emission tax on each unit of CO2-equivalent emissions. Carbon taxes have the capability of being broadly applied to the carbon-based fuels across a county’s entire economy. Emissions trading schemes can be designed to apply to the intra-company, domestic, and international levels and can focus on the primary emitters of greenhouse gases, especially fuels that are not related to transportation. The IPCC’s Second Assessment Report adopted the convention of using permits for domestic trading systems and quotas for international trading systems.13 Emissions trading under the Kyoto Protocol uses a tradable quota system, based on the assigned amounts calculated from the emissions reduction and limitation commitments.
Carbon Policies for Reducing Emissions in Power Plants through an Optimization Framework
Published in Subhas K Sikdar, Frank Princiotta, Advances in Carbon Management Technologies, 2020
Aurora del Carmen Munguía-López, José María Ponce-Ortega
The carbon tax is defined as a penalization for generated emissions given as a monetary cost per ton of carbon dioxide produced (Avi-Yonah and Uhlmann, 2009). An opposite parameter is the carbon tax credit, which consists of considering the avoided emissions and, based on the amount of reduction, some compensation that can be institutional, public, or private is given. The reductions occur after a change in technologies or in the production process (Graefe et al., 2011). These instruments have been approached in economics as the “polluter pays principle” and the “provider gets principle”, which means that those affecting the environmental qualities should pay while those improving them should be compensated (Vatn, 2015). Both carbon monetization strategies have been criticized for some challenges, including the correct setting of the tax rate, collecting the tax and using the resulting revenue (Marron and Toder, 2014). Additional issues causing uncertainty are that the tax credit has an arbitrary economic value (Hoel, 1996) and that the tax is standardized without accounting for economic sectors, industrial development and regional conditions (Newell et al., 2013). Whether the final decision is investing to reduce emissions or paying the economic penalty, there are associated costs (Clarkson et al., 2015). This is the importance of analyzing the effect of carbon penalizations and compensations.
The green supply chains’ ordering and pricing competition under carbon emissions regulations of the government
Published in International Journal of Systems Science: Operations & Logistics, 2023
Kourosh Halat, Ashkan Hafezalkotob, Mohammad Kazem Sayadi
The competition within SCs has become more challenging over the last few years, as governments and legislators have introduced carbon emissions regulations for industries to control climate change. The governments need to impose rules to prevent market failure and environmental degradation (Sterner & Coria, 2012). Many policies, methods, and instruments such as taxes, subsidies, technology standards, carbon trade, deposit systems, and so on have been developed to limit greenhouse gas (GHG) emissions, primarily carbon (Somanathan et al., 2015). For instance, several countries such as Sweden, Germany, Italy, and Japan have imposed a carbon tax scheme where companies must pay taxes based on their emissions (Bian & Zhao, 2020). The US EPA has also imposed a carbon emissions threshold for national power plants (Kuo et al., 2016). In 2005, the European Union implemented the Emissions Trading System (ETS) in which, a certain cap is imposed on emitters, and excess emissions are traded in a carbon market (Allevi et al., 2018). Although the purpose of environmental policies is to reduce pollutions directly, the governments and legislators usually consider them along with social and economic aspects to achieve sustainability. Therefore, the objective of the government by imposing those policies is to enhance social welfare.
Optimal joint decisions of production and emission reduction considering firms’ risk aversion and carbon tax rate
Published in International Journal of Production Research, 2023
Qi Qi, Shanling Li, Ren-Qian Zhang
In recent years, governments worldwide have believed that pricing carbon emissions through a carbon tax is one of the most powerful incentives to encourage firms and households to pollute less, which will benefit human society as a whole and firms’ images and returns in the long run. A carbon tax is a form of pollution tax that levies a fee on the production, distribution, or use of fossil fuels based on the amount of carbon emitted by their combustion. The government sets a price per ton on carbon and then translates it into a tax on electricity, natural gas, or oil used in production or transportation. However, the application of carbon taxes is limited. Many manufacturing sectors, including basic chemical manufacturing, primary metal manufacturing, cement and concrete product manufacturing, miscellaneous chemical product manufacturing, and nonmetallic mineral product manufacturing, believe that they will be negatively affected.
Optimal trade-in and warranty period strategies for new and remanufactured products under carbon tax policy
Published in International Journal of Production Research, 2020
Kaiying Cao, Bing Xu, Jia Wang
Recently, governments have increasingly enacted carbon tax policies to curb carbon emissions in light of serious environmental issues like global warming, rising sea levels and worsened ecosystem problems (Drake, Kleindorfer, and Van Wassenhove 2016). For example, United Kingdom, Australia, Finland, Norway, Germany and other countries have enacted carbon tax policies (Gale, Brown, and Saltiel 2013). A carbon tax policy forces manufacturing firms to engage in remanufacturing activities that are ‘triple-win’ (i.e. activities that have potential economic, environmental and social benefits) (APSRG 2014). To retain regular customers and promote products sales, many manufacturing firms offer trade-in services that are also supported by governments (Cao, Bo, and He 2018). For instance, the Chinese government offered trade-in subsidies to trade-in consumers who returned their used automobiles and home appliances from 2009 to 2011 (Chinese government 2009; Zhu et al. 2016b), and the government offered subsidies to consumers trading in old products for remanufactured ones starting in 2015 (NDRC 2013).