A Carbon Tax concerning Electricity Generation by Team Eco
We plan on implementing a tax on companies that produce electricty using fossil fuels.
We hope to implement a tax on power generating industries based on how much CO2 they emit monthly. These taxes will then go to planting trees and developing eco-friendly methods of producing energy. These taxes will deter companies from obtaining power from fossil fuel based sources.These sources will also be taxed heavily thus making fossil fuels too expensive to use on a commercial basis so new renewable power generating methods will be encouraged. This will make renewable energy methods preferable over non-renewable sources.
Category of action
Youth Leadership on Climate Change
What actions do you propose?
We intend to focus the tax on the electrical output of privately owned power generation companies.The tax will be calculated based on the method of generation and the amount of power generated. Companies that use fossil fuels will be more heavily taxed then those who use renewable methods of power generation, who will be taxed lightly. For example a company that uses coal for power would be taxed according to the amount of electricity (in kilowatt-hours). Thus, via this method less carbon efficient fossil fuel generators will be taxed more heavily than fossil fuel power plants that produce the same amount of power, but less carbon emissions. Therefore more carbon heavy methods receive a higher tax than companies that are less carbon output heavy. The tax is based on the carbon emissions to energy ratio and every watt generated is taxed accordingly. This will also be brought to the United Nations if possible so no company can "cheat" the system and set up a power-generation plant in a country that does not support this tax.
Who will take these actions?
This tax will be federally regulated by all countries and all money collected from the taxes will sent to the ministry of environment of the various countries which in turn will be used to increase the development of the renewable energy industry.
What are other key benefits?
Some other key benefits is that it will motivate society to move away from non-renewable resources and research new technologies and ideas in the environmental science field.
What are the proposal’s costs?
Economically their is very few negative consequences as only companies that create electricity using fossil fuels will be affected. Also, the renewable energy companies will get more customers as more companies will be relying more on them and the industry itself will become more economically viable than fossil fuels. Also start-up companies dealing with renewable energy will funded and supported by the government more vigorously to allow a complete overall generating system.
The proposed action will be phased in gradually over a short time to allow for countries to develop their renewable energy supply while the price of fossil fuel power gradually go up. We should not do this immediately since it will create a shock to the industry especially if there is a lack of renewable resources that are developed.
New and completely original idea brought to you by Team Eco, a young youth group at UofT.
We give big thanks UofT for the use of the their resources and the encouragement they had provided including the motivation to embark on such a project.