The Green Market Transition: Carbon Taxes, Energy Subsidies and Smart Instrument Mixes

The ratification and subsequent entry into force of the Paris Agreement in 2016 constituted an important milestone in the international climate negations. The Agreement has as its objective the strengthening of the global response to climate change by keeping a global temperature rise well below 2 degrees Celsius above pre-industrial levels and signatories strive to undertake efforts to limit the temperature increase even further to 1.5 degrees Celsius. Importantly the Agreement incentivises signatories to realize their Nationally Determined Contributions (NDCs) to reducing greenhouse gas emissions. As it is already clear from the literature, the current NDCs are insufficient to ensure the attainment of these goals. More profound efforts to reduce greenhouse gas emissions and to foster a transition of the national economies are required. This volume of the Critical Issues in Environmental Taxation therefore addresses market transitions by examining carbon taxes, the subsidies and support schemes for carbon and energy related policies. Moreover it examines the underlying policy dynamics and constraints of related fiscal measures. Contributions also touch upon the very important issue of smart instrument mixes examining how instruments can work in harmony with each other