Governments charge carbon taxes on fossil fuels (like coal, oil, and natural gas) based on how much carbon dioxide they release when burned.
They are widely seen as tools to fight climate change, but in many cases, their main goal isn’t to reduce emissions.
New research, led by Johan Lilliestam, published in One Earth shows that most carbon taxes are not truly climate-focused.
Out of 25 national carbon taxes in 2023, 19 were introduced at levels too low to make a meaningful impact on reducing emissions.
Instead of cutting emissions, they’re sometimes used to raise money for general budgets or to meet international expectations.
Just because a country has a carbon tax doesn’t mean it's seriously tackling climate change, says Lilliestam.
For a carbon tax to reduce emissions, it must be set at a certain price level, something many countries fail to do.
These countries all started with carbon taxes below climate-effective levels. Researchers analysed how the taxes were designed and what governments said they were for.
The study found that in the first few years, most low carbon taxes were created for reasons like tax reform, economic goals, or political image, not to cut emissions.
Switzerland, France, and Canada showed evidence of starting low and raising the carbon tax later as support grew, a strategy called “within-policy sequencing.”
Even when countries did raise their carbon taxes, it took a very long time, sometimes up to 30 years.
By 2023, 12 of the 19 countries still had carbon taxes below the minimum level needed to significantly reduce emissions.
Even in countries with carbon taxes, many industries are exempt or only partially included, further weakening the climate impact.
Lilliestam warns that countries may point to their carbon taxes to appear climate-friendly, while continuing to delay serious climate actions.
Read more at Phys.org
Research published in OneEarth