Climate Change and Tax Policy Essay Example | Topics and Well Written Essays - 2250 words

Climate Change and Tax Policy - Essay Example Carbon Tax is a kind of Pollution Tax purported to be applied on the energy sources which emit carbon dioxide. (Wikipedia)1 The Carbon Emission Trading on the other hand as provided by Kyoto Protocol involves the global trading of permits to emit green house gases converted in terms of Carbon dioxide. (Wikipedia) 2 Obviously there is a need to put a price on carbon to force companies to abandon older, dirtier technologies for newer, cleaner ones. Today the atmosphere is being used as municipal dump where carbon dioxide is deposited free. The New York Times (2007) 3 Once the governments start putting a monetary value on this privilege, business and industrial houses will be forced to evolve smarter ways to run their business. A carbon tax is one approach. Another is to impose a steadily decreasing cap on emissions and Several arguments are being advocated for and against each of these two forms of measures that can be undertaken by the different countries of the world. This case study ______________________________________________________________________ Carbon tax is based on the carbon content of the fuel being consumed by each entity individually. Under economic theory carbon tax represents an indirect tax on the negative externality as such tax would add up to the actual cost of production by internalizing the social cost of polluting the environment by emitting carbon dioxide and other gases. Charles Komanoff (2007)5 opines that to attack global warming, every energy-critical decision needs to be predicated on a trajectory of rising energy prices. A phased-in carbon tax allows this, whereas cap-and-trade will do little to mitigate the price roller-coaster that discourages emissions-minimizing investment. 2.1Cases for Carbon Tax: Levying a tax on the emissions will: Reduce the fossil fuel usage and substitute them by clean fuels and technology Provide a revenue steam to enable a progressive tax shifting - Carbon Tax Centre6 Carbon tax could be extended to all carbon based consumptions while trading systems may not be able to reach parts of the transportation and service sectors Transaction costs are lower in the case of carbon tax as compared to emissions trading Carbon taxes pose an effective system for the reduction of emissions as it is a permanent incentive to reduce the emissions Kevin Baumert

Scottish & Southern Energy plc Case Study Example | Topics and Well Written Essays - 1500 words

Scottish & Southern Energy plc - Case Study Example "SSE's strategy is to deliver sustained real growth in the dividend payable to shareholders through the efficient operation of, and investment in, a balanced range of regulated and non-regulated energy-related businesses. The successful implementation of this strategy in 2006/07 delivered another year of excellent financial performance, with profit before tax exceeding 1 billion for the first time, and strong operational performance, with our policy of responsible pricing helping us to gain more than one million additional customers" (Miranda.com, 2007). "We are committed to offering customers a combination of price, service and products which will enable us to achieve further growth during the rest of the financial year and beyond" (Ian Marchant, as quoted by Hamish Rutherford, The Scotsman, 2007). Scottish and Southern Energy plc, believe that the company's rapid growth has been due to a consistent and continuing focus on four essential areas: the maintenance and investment in present energy networks; continued investment in SSE's "leading-edge portfolio" (Annual Review, 2006, p.1); increasing and developing energy supply; and through the development of a strong presence in businesses such as gas storage, contracting connections, and telecoms. As a result of the achievements and progress made within these central goals, the company's 2006 reported its financial performance, with adjusted profit before tax, as being at approximately 858.2 million (Annual Review, 2006). Scottish and Southern Energy was formed in 1998, following the no-premium merger of Southern Electric and Scottish Hydro Electric, and required Connect South West contracting business just a year later. Following this Scottish Hydro Electric Contracting was launched, while by 2000, the company had acquired the energy supply business, SWALEC, it had completed its 50% investments into the Seabank 2 gas-fired power station, and the number of customers had exceeded more than four million. Then, in 2001, SSE began operating Cuilieg, the corporation's hydro election power station - it's first in forty years - and in 2002, the company's Annual Report showed profits of some 597.2 million (Annual Report, 2002). SSE's growth continued in 2003, the year in which the company acquired Neos Telecom, and customers passed the five million mark. It was also during this period that Scottish and Southern Energy announced its plans to construct the Glendoe hydro-electric power station, while also acquiring the balance of equity for the