In light of unprecedented pollution levels in Beijing, the Chinese government announced plans last week to introduce a carbon tax with the goal of curbing emissions. The Xinhua news agency also reported the government will implement an environmental protection tax.
While the country is one of the largest contributors to global pollution, the introduction of the new tax policies puts China on the leading edge of environmental policy to address climate change.
What stands to be seen, however, is how these abatement costs will compare to the cost of inaction in both the short and long term. Presumably, the tax will incentivize research and development in cleaner energy sources and lead to a more diversified energy portfolio.
Here’s the link to Xinhua’s story – China to introduce carbon tax: official