Carbon Dividends Analysis Essay There are many environmental issues that face al of humankind and require an early solution. Most of them are associated wit the consumption of natural resources that are fossil resources such as coal and ol, Their unlimited use endangers humanity's Continued existence and directly harms the environment, polluting it with waste and leading to such effects as global warming (World Meteorological Organization, 2078). This paper's central thesis is that a so-called carbon tax can help address environmental and other concerns, allowing for better resource use, Despite al attempts to design @ new energy source to ‘change the situation, global warming is cbserved worldwide due tothe emission of greenhouse gases, which needs to be regulated. Thus, theres a need to create a global, at least on a national scale, system that would help adress the a problems. A theoretical investigation of the environmental and pottical situation is needed to analyze whether @ help. This study will be supported by arguments and evidence from both the creator ofthis method, Boyce, JK., and other researchers, as well as @ government report. ron tax can The importance and necessity of taking any measures to correct the current eeologial situation ate apparent. Due to the Industrial revolution and the active use of resources, humanity drastically influenced the weather. The rise in temperature ‘around the world was part ofthe reason why the 2015 Paris Agreement was established. Iis purpose Is to regulate measures to reduce carbon dioxide in the atmosphere and curb global temperature rise (Boyce, 2018). However, this particular document does not directly regulate the current situation, which makes it necessary to develop a specialized system. ‘The essence of the problem fis inthe active use of natural resources such as ol and coal which, when burnea, emit carbon dloxide. Inthe chaotic use of these fuels, gases are released into the atmosphere, leading to global warming. The presence of global warming is confirmed by the reports of the intergovernmental group of experts on climate change, thereby destroying the doubts about the existence of this phenomenon (World Meteorological Organization, 2018). The problem has two components: uncontrolled waste of limited resources and the ensuing environmental impact. The basis of this problem Is human nature, as well as the avalailly and gratuitousness of natural resources. If there is some free source, people tend to use it Lnwisely ang ilterately, not considering its limitations and the fact that this resource will end sooner of later (TEDx Talks, 2013) ‘Such attitudes and policies often lead to overuse, which jeopardizes the very existence of a source. Although there s an active development of akernative energy sources, there is no opportunity to abandon fossil resources. Therefore, itis necessary to somehow regulate their current use on a global scale. The carbo ' explicitly designed to accress the problem by imposing a fee for using this accorded resource, For the ‘consumer, the system consists of two main components. The introduction of general tax an consumption and carbon dioxide emissions from cars, electricity, and other related resources is proposed (Boyce, 2019). Thus, each resident is burdened with 2 particular adaitional payment folowing ther level of consumption. An essential point in tis systems the redistribution of the recelved funds back to the residents (Boyce, 2019). Since these dividends are calculated upon all taxes collected, each person recelves a fed amount of money. In practice, thls means that dividend payments wil be much higher for many members of the lower and middle socal class than the tax they pay. Undoubtedly, most ordinary residents will approve ofthis Idea based on the mere prospect of earning additional income. Stilt should be noted what such a solution brings to the global fuel consumption system. First, this system is based on a rethought Understanding ofthe concept of a country's natural resources. To implement the approach, the planet Earth is presented as @ Universal wealth to which everyone has aright (TEDx Taks, 2013). However, this right isnot related to the need or desire to hang a price tag on the Earth and, in any way, selits parts. ‘This concept means that all Earth inhabitants should have an equal right to use the resources and receive income. The ‘approach is aimed at social equality since, at the moment, citizens are nat connected with the income that the state receives {rom the use and extraction of natural resources. The exception is Alaska and its Permanent Fund, which manages ol profit in the region and redistributes them in the form of dividends to all residents of the state (Boyce, 2019). The basic idea of @ carbon ‘ax is similar to that ofthe Permanent Fund and extends it toa broader group of resources, From an economic point of view, imposing such a charge on people would mean a gradual decrease inthe consumption of sources associated with carbon dioxide emissions. The more @ person drives a car that runs on gasoline, receives electricity {rom stations that run on carbon, the more tax willbe charged. This approach naturally forces people to seek renewable energy‘alternatives (Boyce, 2019). At te moment, the problem is that such sources are much less competitive In comparison with standard and familiar carbon, The introduction of an appropriate tax wil help stabilize ths situation and stimulate the development af alternative energy. Experts agree that this approach is the most productive and cost-effective for developing the economy and curbing atmospheric emissions (Fried et al, 2019), Besides, a similar method can be applied in various ‘economic areas and does not directly depend an other stale measures, working with them together. ‘Thus, when using this approach, there is @ natural regulation of carbon consumption. Que to limiting carbon sources, the development and diffusion of alternative energy sources will naturally make them cheaper. People tend to save more, of they can spend less money switching to an alternative energy source, they are ikely to do so (Boye, 2078). Thus, alr emissions wll bbe reduced since no company will burn adaitiona fuel than the established demand. At the same time, the market will be stimulated to develop cheaper and more affordable alternatives. Finally, one ofthe significant advantages ofthis method is the approximation of social equality between different social groups due to the state's availabilty of financial assistance. ‘The primary, fundamental idea ofthis method is the equal distribution of the accumulated resources among all residents. However, axes willbe collected on an expenditure bas's, which means higher charges for society's wealthier segment (Boyce, 2019). On the other hang, it seems that the extra tax willbe an unbearable burden for the poorest households, However, itis necessary to understand that these citizens will receive divicends that are many times bigger than the new tex. Thus, the lower ‘and middle class willnot incur any spending, either remaining in @ neutral position or even receiving additional income from the ‘excessive consumption of carbon by other people. Reallocating the money raised to pay dividends helps make these policies progressive, efficient, ajarity Fremstad & Paul, 2079). At the same time, studies show that such measures Will also effectively ecuce emissions, thus being postive from all points of view. "Naturally, there are several alternatives to the carbon tax method, mainly related to collecting funds. First, the problem of limiting atmospheric emissions can be viewed in two ways: by imposing a tax or by setting a cap (TEDx Talks, 2013). These systems address the ex’sting problem from two ditferent sides, but they are almost equal in their effect. Establishing a limit aims tallow only a restricted amount of carbon into the economy, but its structure will regulate the price, The tax sets the price and enables the system to control emissions. Since this is the ultimate goal, most of the researchers follow this methodology. ‘The funds collectes through taxes can be distributed in thee directions. The simplest option isto recirect these reserves to companies, mining, or allocating resources (TEDx Talks, 2013), However, this approach assumes thatthe funds raised will go to the company’s internal needs and may even go abroad, which is unacceptable when using national resources, The second 1g money by the state to focus it on the desired directions (TEDx Talks, 2013). The funds raised are ‘added to the country’s budget, after which they can be spent on any critical areas. This method presupposes a relatively high level of citizens trust their government since they wil additionally sponsor the state. method involves collect Finally, the last option includes the dstibution of the collected funds in the form of dividends. However, there are also several approaches related to the process and the amount of money returned. The method of double dividends and dividends with ‘one-time aiscounts stand out most strongly along with those considered earller. Nevertheless, according to experts, they cannot withstand any competition witha carbon tax (Fremstad & Paul, 2018) The frst approach does not provide sufficient protection for citizens’ purchasing power, taking more than t returns (Fremstad & Paul, 2019). Another method focuses more on ‘economic rather than environmental benefits, generating a one-time income (Fried et a, 2018). Although such an approach ‘Would be more beneficial for citizens it shows much lower results in reducing ar pollution inthe future, extending the existing problem for several other generations. Thus, positive qualities that are manifested both atthe economic and social levels. With such an approach, natural regulation of the ‘number of consumed resources can be achieved, stimulate the development of alternative energy sources, and ensure social protection of the poor. Naturally, such a policy will not help solve all the existing problems, and the issue of climate disruption, emissions into the atmosphere, and global warming wll remain relevant. However, the actions described above will give the World enough time to finda clean energy source that does not pollute the environment. With al the other benefits, a carbon tax Is an effective way to reduce emissions and limit fossil resource consumption, ‘This method has a set of carbon taxis currently the most optimal way out ofthe current environmental situato References Boyce, 4K. (2018). Carbon pricing: Elfectivaness and eouity. Ecological Economies, 150, 52-61. Web. Boyes, JK. (2019). 7 se for carbon alvidends. John Wiley & Sons.Fremstad, A. & Paul, M. (2019), The impact ofa carbon tax on inequality, Eeolagical Economics, 163, 88-97, Web. Fried, S., Novan, K, & Peterman, W. (2019). The green dividend dilemma: Carbon dividends versus double-clvidends. FED Notes. Web. TEDx Talks. (2013), Unlocking our climate wealth: James Boyce at TEDsTraversecity (Video). YouTube. Web. World Meteorological Organization (2018). Global warming of 1.5° . Web.