International Comparison Of Carbon Tax

The effect of carbon tax, as a means of adjusting to climate change,controlling carbon dioxide emissions has been verified in some countries.Carbon tax, which is levied on fossil fuels (such as coal, natural gas,gasoline and diesel, etc.) according to their carbon content or carbonemissions, will reduce fossil fuel consumption and emissions of carbondioxide emissions, and ultimately achieve the goal of mitigating globalwarming by increasing the price of fossil fuel and other high energy–consuming products. Carbon tax can not only play the role of taxincentives means, but also be implemented easily for the characteristicsof its revenue neutral feature. On the basis of “common but differentiatedresponsibilities principle”, China should consider the carbon tax systemin order to achieve the commitments of the international Climate ChangeConference better.The earliest research on the carbon tax dates back to Pigou tax, thatis externality theory, later developed into the double dividend theory andpublic goods theory; also someone proposed the polluter pays principle.These are the theoretical basis for carbon tax. Study abroad morethorough on carbon tax, the carbon tax practice of OECD membercountries provides valuable experience for our carbon tax legislation.Through comparing these countries’ carbon tax system, the author summarizes the considerable differences, mainly embodying the form, taxrate, preferential policy and tax revenue use. For example, some countrieshave adopted a fixed rate system; some have implemented a progressivetax system. And some use the tax revenue into researching carbonemission reduction high-tech; some use it into subsidizing businesses andindividuals.From January2012，airlines landing or taking off within Europe willhave to buy permits for carbon emissions over and above a pre-setcap.This plan stems from the carbon trading mechanism officiallylaunched by the EU. Despite a large number of objections from airlines，it seems the EU would not give up this plan.The2011Christmas Eve, theEU Supreme Court ruling United States v. EU to levy aviation carbon taxcase lost. To some extent, aviation carbon tax is reasonable and lawful. Inorder to solve the problem, opening the higher levels of strategicdialogues on the government level are necessary.Airlines can also takeadvantage of the buyer power on the aircraft trade market to pressure theEU，while holding talks and consultations with different units of the EUon different levels.China′s civil aviation industry should take the initiativeto meet the energy saving and carbon emission reduction challenges bymaking its business "greener".The Chinese government should use thisopportunity to accelerate the development of biofuels for the aviationindustry and establish a domestic carbon trading market as soon aspossible. There is no relevant legislation to carbon tax, and the laws onclimate change are relatively less in China. In order to achieveemissions-reduction targets, building a carbon tax system is particularlyimportant.From the course view of western countries’ carbon tax,following the general rules of carbon tax and clearing its legal status arecritical. The general idea on carbon tax legislation will be designed asfollows: carbon tax must take “tax incentives and constraint”,“step bystep, taking into account environmental protection and economicdevelopment” as the value orientation. Its function will be located in“energy saving control function” and “function to guide the constructionof low-carbon city”. A carbon system should be built following thegeneral ideas: firstly, the object will be defined as a collection of miningand processing coal, oil and natural gas; secondly, the taxpayers are theenterprise and the production units; thirdly, at the beginning, setting alower tax rate, and then gradually increasing, Making a clear legalprovisions for the tax rate adjustments and implementing revenue neutralreform; fourthly, the implementation of the tax preferential policies,which are for energy-intensive enterprises who taking carbon emissionreduction technology; fifthly, the tax revenue into central finance as ageneral revenue, unified management.Carbon tax legislation has important strategic significance to China,and also will have a positive impact on globe climate change, economicand political systems. In response to the pressure from the international and domestic level, the Chinese government should be actively studyingthe carbon tax legislation.