Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
4) Discuss the concept of carbon tax, also analyse to what extent it can prove to be an effective policy instrument in achieving INDC targets for India.(250 words)
Why this question:
The question is based on the concept of carbon tax and the utility of the same as an effective policy instrument.
Key demand of the question:
One must detail on the concept of carbon tax and list down its advantages and potential.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Define what is carbon tax.
Carbon tax is a form of pollution tax. It levies a fee on the production, distribution or use of fossil fuels based on how much carbon their combustion emits. The government sets a price per ton on carbon, and then translates it into a tax on electricity, natural gas or oil. Because the tax makes using dirty fuels more expensive, it encourages utilities, businesses and individuals to reduce consumption and increase energy efficiency.
List merits –
Carbon tax also makes alternative energy more cost-competitive with cheaper, polluting fuels like coal, natural gas and oil.
Carbon tax offers social and economic benefits.
It is a tax that increases revenue without significantly altering the economy while simultaneously promoting objectives of climate change policy.
The carbon tax is the most practical method to reduce the fossil fuel consumption. It checks the use of fossil fuel.
It helps India to reach the committed INDC of 33% by 2030.
Conclude with way forward.