Green tax

2. Green tax refers to taxes intended to
promote ecologically sustainable activities
via economic incentives. such a policy can
complement or avert the need for
regulatory approaches.

3. Carbon tax is an environmental tax
that is levied on the carbon content of
fuel. Carbon atoms are present in
every fossil fuels and are released as
carbon dioxide (CO2)when they are
burnt.

4. • Carbon tax is implemented in
proportion of the carbon content
included in the fuel burnt.
• It increases the competitiveness of
other non-carbon technologies.
•It helps to protect the environment and
also to raise revenues.

5. • CO2 is a heat trapping green house gas.
• The scientific consensus is that human
induced greenhouse gas emission are the
primary cause of global warming.
• world wide 27 billion tones of co2 are
produced by human activity annually.
• Carbon taxes are one of the policies available
to govt. to reduce greenhouse gases emission.

6. Fuel tax is an excise tax imposed on the
sale of fuel. In most countries the fuel tax
is charged on fuels which are intended
for transportation.

7. • Because of the relatively inelasticity of demand for
petrol, in the short run the tax will be an effective source
of revenue.
• In the long run the demand is more elastic, so people
reduce the consumption as the price increases.
• Many European countries use a fuel tax to
decrease dependence on fossil fuels.
• Cross –boarder purchasing of motor fuel.
• It has a great role in energy policy.

8. The Natural Resource Consumption tax is a
kind of tax to helps to ensure the long run
sustainability by making people be more
aware of natural resource consumption.

9. The popular conception of inter
national waters is that there is no
owner for them . So anyone can take
advantage of them.

10. At present property laws govern this
issue. Natural resources are bound to
the land and offshore natural resources
are deemed to be owned by the state.

11. A pigovian tax is a tax levied on a
market activity that generates negative
externalities. The tax is intended to
correct the market outcome.

12. • It is considered as one of the traditional means of
bringing a medium of market forces.
• An alternative to pigovian taxation has arisen, the
creation of a market for `pollution rights’.
• Pigovian taxes are often more appealing to policy makers
because giving out the rights for free allows polluters to
lose less profits or even gain profits relative to the
unaltered market case.
•One difficulty with pigovian tax is calculating what level
of tax will counterbalance the negative externality.

13. The alternative regulation is viewed as having a
higher costs to society because pigovian taxes raise
revenue and respond automatically to change in
the market such as lowered cost of production or
pollution mitigation.

14. Land value taxation is an ad valorem tax on
the value of land. This ignores buildings,
improvements and personal property.
Because of this land value tax is different
from other property taxes.

15. • Most taxes distort economic decisions.
* If labor or machinery and plants are taxed
people are dissuaded from constructive and beneficial
activities and enterprise and efficiency are penalized due
to the excess burden of taxation.
• Land value tax forces people to devote land to its most
productive use in order to be able to afford the tax, even
if they want to use it for a less productive use.

16. Thank You