ENSC 310 Lecture Notes - Lecture 11: Kyoto Protocol, Polluter Pays Principle, Perfect Competition
18 Aug 2016
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Based on polluter pays principle tax you pay should be proportional to emissions you produce: build widgets with less polluting materials less carbon intensive energy (substituting materials or energy, alter production process, developing new technology. *trial and error based tax is too low if everyone is willing to pay it tax rate should be set equal to monetary value of environmental damage in unit of pollution (difficult to implement) Widely used in western europe limited use in canada (primarily used in municipal sewage: i. e bag tags. Scandinavian countries use carbon taxes on fossil fuels charging a non-compliance fee to users exceeding pollution levels permitted criticized because they don"t require emissions to be reduced to maximum extent possible (not getting max. emissions reduction) Subsidies opposite of effluent taxes governments paid (polluters paid a set fee for every unit reduction in emissions)
