Tax as a Solution for Climate Change

Abstract

Introduction – As a financial instrument, tax has always been one of the policy support instruments that governments apply to solve problems. The issue of the environment, on the other hand, is a notion that has gained more importance over the past years and governments struggle to create solutions to environmental problems on the global scale. Climate change is one of the most important parts of this issue. Especially in our modern day, as a result of natural disasters, forest fires and landslides, climate change has become a field in which serious political measures should be taken. Although it has become necessary to implement tax as a tool to decrease carbon emissions and to open new fields for works with less carbon emission, the expected/desired results about carbon emissions have not been obtained throughout the world.

Purpose – The aim of this chapter is to examine carbon taxes, which are the tax applied against climate change, and to draw attention to the multiple policy approach in the face of global environmental problems.

Methodology – This chapter, in which qualitative research method is adopted, has descriptive elements. In this context, an evaluation has been put forward in the light of the data obtained from various reports and scientific articles.

Findings – Though tax is indeed considered as an effective political tool among the precautions to be taken, one-dimensional approach might bring along a deadlock in the solution of this problem. In order to improve this approach and the perception towards the environment across society, it is necessary to include other factors that can play an important role in this process such as non-governmental organisations. Consequently, in order to solve the environmental problems which have occurred as a result of human activities, it is essential to minimise the destruction caused by these human activities (although it is not possible to restore it completely). Therefore, a multi-dimensional policy instead of a one-dimensional policy, an environmentally conscious society and state, and cooperation of policy actors on a global scale are basic elements which can play an important role in the solution of the problem.

Citation

Kurular, G.Y.Ş. (2020), "Tax as a Solution for Climate Change", Grima, S., Özen, E. and Boz, H. (Ed.) Contemporary Issues in Business Economics and Finance (Contemporary Studies in Economic and Financial Analysis, Vol. 104), Emerald Publishing Limited, Leeds, pp. 165-178. https://doi.org/10.1108/S1569-375920200000104011