A holistic approach in analyzing the impact of a carbon tax in the OECD: a framework for further discussions

Carbon dioxide is one of the byproducts of burning fossil fuel and a major greenhouse effect gas, responsible for the anthropogenic climate change. To reduce the global warming from this perspective, will require calling on the doors of energy demand. It becomes obvious that energy demand will be influenced primarily by sustainable economic development in the medium term and by environmental considerations in the longer term. Measures being contemplated within the OECD to tackle global warming are mainly regulatory, economic, taxes, technological improvement, and change in social behaviour and attitude. The European Community has come up with a specific proposal of a carbon/energy tax. However, the energy exporting developing countries, where oil revenues are the major source for foreign exchange, capital formation and economic development, are worried. This paper examines the impacts of implementing a carbon tax to reduce carbon dioxide emissions and also analyze the effect of such on the use of non-commercial energy in developing countries. 9 refs., 4 tabs