Research On The Equitable Principles Of Carbon Tax Collection

Globally, frequent extreme weather causes huge losses to every country. As aresult, the countries in the world have put the environmental issue on the agenda withresearches on many global problems arising from greenhouse gas emissions. TheUnited Nations has also had several international consultations, looking forward to anagreement on emission reduction, so as to reduce carbon dioxide emissions andmitigate climate deterioration. However, developed countries demand developingcountries to bear the obligations of mandatory emission reduction. On the contrary,developing countries request developed countries to take their historical responsibility.So, the fairness between them has got more and more attention of the internationalcommunity.Now, under the double pressures of domestic ecological environmentdeterioration and international carbon reduction, it is urgent to take concrete andeffective measures to reduce carbon emissions and prevent further climatedeterioration. Among the means of emission reduction, carbon tax is an operable andeffective one. But improper carbon taxation will give rise to many social fairnessproblems. If efficiency is the goal of economics, fairness is the value aim of law.It is Nordic countries that first put carbon tax into practice with deepertheoretical research. At present, carbon tax is being introduced to Canada, Australiaand Japan. China has not yet put carbon tax into practice, and the related research isquite late. With quite little study on its basic theories, both economists and legalscholars attach more importance to its system construction to solve the present andfuture practical problems in China. Few scholars discuss carbon taxation fairness. Infact, the principle of fairness should become one of the basic principles in China’sfuture carbon tax law.Our research on this question is based on the above historical and academicbackgrounds. Besides common characteristics of taxation, carbon taxation has itsparticularity. The emission of carbon dioxide is in every corner of the world. If thereare no control measures, carbon dioxide will finally enter the air space withtransnational negative externality. In addition, carbon dioxide is a non-toxic gas, which is harmless to environment. It will be harmful only when it stocks too much inthe atmosphere. With limited emission space and unique characteristic of globality,carbon dioxide, a public product, is attracting much attention throughout the world.Carbon tax, which is a taxation for the emission of carbon dioxide, has a globalcharacteristic, compared with other kinds of taxation, so it needs coordination andcooperation of all countries in the world.The particularity of carbon taxation leads to the special characteristics of carbontaxation fairness. First, it includes both domestic and international fairness; Secondly,what it pursues is substantial fairness, and not form fairness; Thirdly, it includeseconomic fairness, but lays more stress on social fairness. Consequently, the principleof carbon taxation fairness is not only a basic principle which must be followed by allcountries in carbon tax legislation, but also a fundamental principle which must becomplied with in the international coordination and cooperation of carbon tax. Andthe principle of common but differentiated responsibilities is just its embodiment inthe international coordination and cooperation.Sufficient theoretical bases have given justification into carbon taxation, or evenif it has legitimacy after legal recognition, carbon taxation still has no justification dueto the lack of theoretical bases, which mainly include the basis of taxation, ecologicalethics, economics and law.The international practice of carbon tax suggests that improper design of thecarbon tax system can easily give rise to following social fairness problems: first,low-income earners will suffer higher economic burden, worse living condition andlower living standard; secondly, energy-intensive enterprises will be faced withincreasing cost, declining international competitiveness, and decreasing exportvolume; thirdly, regional economic development will be restricted, the economicgrowth in underdeveloped regions will slow down, and the unbalanced regionaldevelopment will be worsened; fourthly, developing countries will suffer from limitedgrowth, unimproved living and a widening gap with developed countries.Different economic development stages contribute to different problems thatevery country faces. Carbon taxation will bring heavy burdens to economicallyunderdeveloped countries. Some poor countries are more eager to solve the issues of survival and development. It is a violation of the principle of fairness that developedcountries demand developing countries to take a mandatory emission reductionobligation. In fact, developing countries must adhere to the principle of common butdifferentiated responsibilities. This is also an embodiment of the UN’s realizing globalfair growth in compliance with the principle of fairness and by means of emphasizingthe historical emission problems of developed countries while lightening the burdensof developing countries in the cost of carbon emission reduction.The ways to realize the principle of carbon taxation fairness are divided into twoparts, of which the first part mainly answers how to realize the principle of fairness indesigning the legal system of carbon tax, and the second part mainly answers how torealize the principle of fairness in taking the internationally environmentalresponsibility of carbon tax. The discussion of the first part includes the followingfive points: First, in the rate of taxation, we should set it from low to high and stepand step; secondly, in the object of taxation, we should lay stress on the emissions ofenterprises, mainly on their fossil fuel; thirdly, in the subject of taxation, we shouldconcentrate on the enterprise, not on the individual; fourthly, in the preference of taxdeduction and exemption, we should give priority to low income groups; fifthly, in theownership and purpose of taxation, we should realize the function of adjusting thesocial fairness by taking the method of transfer payment for underdeveloped areas andlow-income groups. The second part focuses on detailed analysis of the principle of“common but differentiated responsibilities”. Its essence is that, in terms of the globalenvironmental protection, all countries have common obligations and responsibilities,but their responsibilities are differentiated, namely, developed countries should takeprimary responsibilities, and developing countries should take secondaryresponsibilities, which is the embodiment of the principle of carbon taxation fairnessin the international coordination and cooperation of carbon tax.