Green tax refers to taxes intended topromote ecologically sustainable activitiesvia economic incentives. such a policy cancomplement or avert the need forregulatory approaches.
Carbon tax is an environmental taxthat is levied on the carbon content offuel. Carbon atoms are present inevery fossil fuels and are released ascarbon dioxide (CO2)when they areburnt.
• Carbon tax is implemented inproportion of the carbon contentincluded in the fuel burnt.• It increases the competitiveness ofother non-carbon technologies.•It helps to protect the environment andalso to raise revenues.
• CO2 is a heat trapping green house gas.• The scientific consensus is that humaninduced greenhouse gas emission are theprimary cause of global warming.• world wide 27 billion tones of co2 areproduced by human activity annually.• Carbon taxes are one of the policies availableto govt. to reduce greenhouse gases emission.
Fuel tax is an excise tax imposed on thesale of fuel. In most countries the fuel taxis charged on fuels which are intendedfor transportation.
• Because of the relatively inelasticity of demand forpetrol, in the short run the tax will be an effective sourceof revenue.• In the long run the demand is more elastic, so peoplereduce the consumption as the price increases.• Many European countries use a fuel tax todecrease dependence on fossil fuels.• Cross –boarder purchasing of motor fuel.• It has a great role in energy policy.
The Natural Resource Consumption tax is akind of tax to helps to ensure the long runsustainability by making people be moreaware of natural resource consumption.
The popular conception of international waters is that there is noowner for them . So anyone can takeadvantage of them.
At present property laws govern thisissue. Natural resources are bound tothe land and offshore natural resourcesare deemed to be owned by the state.
A pigovian tax is a tax levied on amarket activity that generates negativeexternalities. The tax is intended tocorrect the market outcome.
• It is considered as one of the traditional means ofbringing a medium of market forces.• An alternative to pigovian taxation has arisen, thecreation of a market for `pollution rights’.• Pigovian taxes are often more appealing to policy makersbecause giving out the rights for free allows polluters tolose less profits or even gain profits relative to theunaltered market case.•One difficulty with pigovian tax is calculating what levelof tax will counterbalance the negative externality.
The alternative regulation is viewed as having ahigher costs to society because pigovian taxes raiserevenue and respond automatically to change inthe market such as lowered cost of production orpollution mitigation.
Land value taxation is an ad valorem tax onthe value of land. This ignores buildings,improvements and personal property.Because of this land value tax is differentfrom other property taxes.
• Most taxes distort economic decisions. * If labor or machinery and plants are taxedpeople are dissuaded from constructive and beneficialactivities and enterprise and efficiency are penalized dueto the excess burden of taxation.• Land value tax forces people to devote land to its mostproductive use in order to be able to afford the tax, evenif they want to use it for a less productive use.