CHAPTER 30: THE WATER AND CARBON CYCLES


ACTIVITY 2: COMPREHENSION 1 Read this article and answer the questions that follow.


A CARBON TAX PROVIDES AN INCENTIVE FOR US TO USE LESS FUEL AND TO USE CLEANER FUELS


by Brian Ó Gallachóir (Brian Ó Gallachóir is Professor of Energy Policy and Modelling at University College Cork’s Environmental Research Institute and is a Principal Investigator in the SFI MaREI Centre.)


Ireland introduced a carbon tax in 2010. This tax applies to certain fuels that we burn for heating and for transport purposes. The tax places a financial cost on the damage caused by the greenhouse gases released when we burn these fuels. The more we pollute, the more we have to pay. Different fuels release different amounts of carbon dioxide, for example coal has a higher carbon content than oil, oil has a higher carbon content than natural gas. The carbon tax rate for renewable forms of energy (including wood, liquid biofuels and renewable gas) is zero. The carbon tax provides a reason for us to use less fuel and to use cleaner fuels. It can prompt us to think more about upgrading how we heat our home or businesses or about changing to cleaner forms of transport.


In 2016 this tax generated about €400 million for the government. Any increase in the tax increases the amount of money available to the government. This money could be used to reduce income taxes or to invest in additional public services (for example health or education) or in infrastructure (for example rural broadband).


This tax is applied to transport and heating fuels. It does not apply to electricity or to other large emitting installations because they have their own carbon dioxide reduction targets and carbon price.


142 UNIT 8: CYCLES


An increase of €10 in carbon tax would mean an increase in purchase price of less than 3 cent for a litre of petrol or diesel. For a typical annual mileage of 18,000 km, our annual transport fuel bill is about €1,400. This additional €10 carbon tax rate would result in an increase of between about €15 to €20 on this annual fuel bill. This is not a huge incentive for us to change how we travel. But it might prompt us to think about it and explore what other options might be available.


Average households spend about €1,500 on oil or natural gas for heating. A €10 increase in the carbon tax rate will typically mean an increase of about €35– €45 in this annual heating bill. To ensure this doesn’t push vulnerable homes further into energy poverty, an increase of €1.50 in the weekly fuel allowance rate would compensate for this tax increase. This extra money could be taken from the extra money brought in by the increase in the tax.


Adapted from: www.marei.ie


EARTH AND SPACE


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