ABSTRACT

A carbon tax is receiving attention as the simplest and most effective measure for combating the problem, and this tax would be levied according to the quantity of carbon dioxide emissions. In the case of Sweden, the energy tax has been replaced by a carbon tax, under which the tax on high-carbon fuels has been increased, whereas it has been lowered on low-carbon fuels such as natural gas. In global terms, there would be no environmental improvement if one country reduces its carbon dioxide emissions only for another one to increase them. If a carbon tax came into effect only in the advanced nations, and if energy-intensive industries relocated to developing countries, then in the final analysis no change at all would have taken place on a global scale. Numerous problems would arise regarding matters such as whether afforestation will actually lead to the fixation of carbon dioxide, as well as details concerning administrative structures etc.