Investment & Controlling. Carbon Taxes in the EEC

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Investment & Controlling. Carbon Taxes in the EEC

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O knihe

Studienarbeit aus dem Jahr 2012 im Fachbereich BWL - Investition und Finanzierung, Note: 1.3, FOM Hochschule für Oekonomie & Management gemeinnützige GmbH, München früher Fachhochschule, Veranstaltung: MBA, Sprache: Deutsch, Abstract: Executive Summary:

Global warming is becoming a serious issue around the world. On a daily base, the effects of global warming can be seen and the number of related natural catastrophes is increasing every year. The global warming effect is directly re-lated to the greenhouse gases (GHG) which are freed when fossil fuels are burned. In this process, carbon dioxide is produced and rises into the atmosphere where it is causing global warming due to reflection of infrared. As a counter measure with the aim to reduce the GHGs the Kyoto Protocol was signed on 11th of December 1997. In this regards, many policy mechanisms to reduce GHG emissions are discussed and are already exists. Scholars are predicting that the mechanism with the strongest effect is pricing on carbon.

This assignment is explaining briefly the background of carbon dioxide and provides also a short introduction of the carbon footprint of products and enterprises. The main part of the work deals with economical aspects of carbon taxation. The chapter is analyzing the greenhouse emission trends since 1990 and derives the affected industry sectors for carbon taxation. Further, the cost of carbon taxation in the EEC is evaluated and an estimated cost increase for a 4-person household in the European member states given.

The finding of this assignment is that carbon taxation in the EEC is useful and is raising the motivation to develop engines that are more efficient and in addition encourage alternative energy sources. At the same time, there are also risks involved in carbon taxation if this is only a European decision rather than a global strategy. In that case future investments are potentially done outside the EEC due to lower or even no taxation on carbon emission.