How a Carbon Tax Can Solve Climate Change

It is not fair that developing countries would also be imposed with carbon taxes without further research on its economic and social implications, including how our the agricultural and transportation services sectors, being two of the largest sources of the livelihood of their citizens, would benefit from this policy.

For instance, in the Philippines, carbon taxation will increase the accumulated transaction costs suppliers will shoulder, including the costs incurred by transportation, machinery, and consumption of fertilizers; thus, increasing the prices of our agricultural products.

A solution may be proposed to the burden, which is to allocate the taxes collected from carbon pricing in subsidizing the needs of agricultural workers; however, will these subsidies be enough to cover agricultural emergencies such as, for instance, flooding? Furthermore, developing countries are challenged by high energy tariffs which are no longer within the scope of carbon taxation.

The premise of carbon taxation does wonders in reducing GHGs; but there are countries that are yet to prepare for its consequences on the livelihood of its citizens.