Carbon Policies
The main reason people are trying to replace or limit the use of fossil fuels is the environmental issue caused by CO2 emission. Many countries have enacted regulations or policies as a force to reduce their carbon footprint.
A Carbon Tax is the most common and simplest way to do so. Based on the amount of carbon involved in the “production” process, the company or individual has to pay different levels of tax as compensation to its’ negative impact on the environment. The question is whether or not this is the way to save the environment? It doesn’t make any sense if the tax is used to build another gasoline power plant for example. It does seems reasonable however, as long as the tax collected will be used in ecosystem protection activities or renewable energies production. However, a tax is not the only way to achieve the target of CO2 emissions control but, It needs other helpers as well. Even though in my opinion, I don’t think a carbon tax is a truly effective way to curb polluters unless, the tax is set at a level greater than the profits generated through non-emissions controls, which would certainly force a company to give up. Unfortunately though, this is impossible and therefore big energy companies won’t care about the tax while after making large amounts profit.
Another way of course is through “cap and trade.” Cap-and-trade is an environmental policy that is mandatory for companies controlling their environmental-polluted items emission, such as CO2, NOx, etc. Programs include the Acid Rain Program and NOx Budget Trading Program. Some doubt these program’s efficiencies and see it as a dangerous distraction rather than a real solution. Cap and trade is a strategy created by economists, this means it is a dollar-based strategy, and instead of “punishing” the polluters with a tax, the polluters would earn money to stay below the “cap” – say 80% CO2 emission reduction by 2050. There are also potential dangers in this flattering strategy as well. Who’s to say that an ethically challenged company wouldn’t be encouraged to create more pollution since by law, the more they have, the more they can trade. And secondly, suppose a company took the money used to treat the trade, and then findings show that the polluter uses the money but never reduced the required amount of CO2 or maybe never reduced anything at all. In he world we live, money should not be used as an encourager to reduce one’s carbon footprint.
Peng Cao






