Topic: Conservation, environmental pollution and degradation, environmental impact assessment.
3. What is a Tobin tax? Do you think levying a Tobin tax for climate change loss and damage fund to raise money for development and climate finance a good way forward? Critically examine. (250 words)
Difficulty level: Tough
Why the question:
In 1972, Nobel laureate James Tobin had suggested what came to be known as the Tobin tax. In essence, it would be an obligation on financial institutions to pay a cess on their currency transactions, but not investment flows. The ultimate aim would be to raise money for development and climate finance and make a sustainable economic recovery more feasible.
Key Demand of the question:
To write about Tobin tax and its efficacy in raising money for climate finance.
Critically examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgment.
Structure of the answer:
Begin by defining Tobin tax.
First, write about the objectives behind Tobin tax and how it works. Substantiate by citing an example.
Next, write about the efficacy if imposing a Tobin Tax for the climate change loss and damage fund. Mention the pros and cons of the both, opportunities and hindrances to levy the tax.
Conclude by writing a way forward and balanced opinion on Tobin tax and its efficacy in raising money for climate finance.