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Should the EU introduce a carbon tax?
A carbon tax can raise revenue that can be used for other climate change mitigation efforts.
More than $28.3 billion in government carbon revenues are currently collected each year in 40 countries and another 16 states or provinces around the world. Of those revenues, 27% ($7.8 billion) is used to subsidize “green” spending in energy efficiency or renewable energy (
Direct levies applied downstream to the emission of carbon dioxide and other greenhouse gases or upstream to the sale of carbon-intensive fuels raised about $21.7 billion in government revenues globally in 2013, about three times the amount raised from
cap and trade systems
It was estimated that between 2015 and 2025 an EU wide carbon tax would have raised
There is no guarantee that the EU would choose to use the revenue for climate change mitigation efforts.
72% of carbon tax revenues worldwide
(US $15.6 billion) are refunded or used in general funds.