Pigouvian Tax Model in Global Climate Policy: Applications, Implications, Drawbacks, and Policy Recommendations with a Concentration on the Carbon Tax
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This paper delves into the outcomes of current uses of the Pigouvian tax model in recent years to address and mitigate environmental concerns such as climate change, resulting in a carbon tax, in various countries. The primary objective of this paper is to analyze and determine the efficacy of the Pigouvian tax model as a global policy – especially concerning carbon dioxide emission tax regulations – by using a thematic case study analysis with policy implications to assess the model's applications, drawbacks, and implications. We examine the economic impact, social equity, political feasibility, regional disparity, and environmental effectiveness of carbon taxation through five case studies: a hypothetical tax model in the Philippines, Germany’s carbon pricing, Canada’s political response to a carbon tax, British Columbia’s regional divide on carbon taxation, and an analysis of the Kyoto Protocol.