Earth Equity News

Taiwan Considering Carbon Tax. By Max Lin, WSJ, October 21, 2009. "Taiwan could become the first country in Asia to pass a carbon tax, part of the country's plan to steadily reduce greenhouse-gas emissions to 2000 levels by 2025. Hang on -- wouldn't a carbon tax be a millstone on the economy, especially one as export-focused as Taiwan's? There are those fears -- plenty of voices in Taipei point out that a carbon tax would increase prices for fuel and power, which would affect the competitiveness of Taiwanese goods. But so would carbon tariffs slapped on Taiwanese imports by the U.S. and some European countries, among them some of Taiwan's biggest trading partners, retorts the government. The U.S. has already included carbon tariffs in the House energy and climate bill; the inclusion of carbon tariffs is gaining momentum in the Senate. In Taiwanese eyes, carbon tariffs have another disadvantage: the revenues would end up in another country. At least with a carbon tax, the revenues would stay in Taiwan. Both conservative and liberal camps in Taiwan agree that taxing CO2 could provide a way to fund renewable energy and energy efficiency. Indeed, a carbon tax starting in 2011 could eventually add about $7.5 billion in revenues to deficit-strained government coffers."