China to tax carbon

Christopher Mims, writing for Quartz:

Details on the carbon tax are scant, but previous reports indicated that it would come into force by 2015 and might start at 10 yuan ($1.60) per tonne of carbon, rising to 50 yuan ($8) per tonne by 2020. Notably, the tax would be collected by local tax authorities, and not municipal environmental protection bureaus.

If it pans out, China’s carbon tax could be monumental. The top rate of $8 per tonne is still shy of what some experts I’ve spoke with think is an appropriate rate, at least for the U.S. If cost of living differences play a role, then $8 may be spot on for China.

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