Why Carbon Taxes, Despite Their Effectiveness, Have Hit Roadblocks

Why Carbon Taxes, Despite Their Effectiveness, Have Hit Roadblocks
A coal-fired power plant in Shuozhou, Shanxi, China. (Photo by Wikimedia user Kleineolive, licensed under the Creative Commons Attribution 3.0 Unported Agreement).

Australia's new senate is working to repeal the country's unpopular carbon tax. In an email interview, Shi-Ling Hsu, the Larson Professor of Law at the Florida State University College of Law and author of “The Case for a Carbon Tax: Getting Past our Hang-ups to Effective Climate Policy,” discussed the role of carbon taxes in national climate change policies.

WPR: What successful steps have governments taken around the world to limit carbon emissions, either through a carbon tax or other regulations?

Shi-Ling Hsu: Governments have taken a wide variety of steps to limit greenhouse gas emissions, but most have been piecemeal approaches that target individual sources, sectors or practices. That said, some have been very effective. Denmark, one of the more coal-reliant countries in northern Europe, embarked upon a wind energy initiative that now has wind turbines accounting for over 28 percent of Denmark's electricity capacity. Europe is also home to the EU Emissions Trading System (EUETS), a cap-and-trade program, which requires a mandatory cap on emissions but allows flexibility in how companies comply, covering about 11,000 emissions sources, and accounting for about 45 percent of the European Union's greenhouse gas emissions. The EUETS represents the most important international initiative in climate policy.

Keep reading for free

Already a subscriber? Log in here .

Get instant access to the rest of this article by creating a free account below. You'll also get access to three articles of your choice each month and our free newsletter:
Subscribe for an All-Access subscription to World Politics Review
  • Immediate and instant access to the full searchable library of tens of thousands of articles.
  • Daily articles with original analysis, written by leading topic experts, delivered to you every weekday.
  • The Daily Review email, with our take on the day’s most important news, the latest WPR analysis, what’s on our radar, and more.