EU PRACTICES FOR CARBON TAXATION

Abstract

Climate change is a long-term challenge. The possible threat of climate change
demands actions from public polices and puts burden and responsibility on
fiscal policy as well. One of the responsibilities is to make economic actors
reduce CO2
emissions, thus mitigate the potential change of temperature. The
focus of the paper is on the application opportunities of carbon emission tax.
The study overviews practices of EU countries, and refers to theoretical models
of optimum taxation to create a possible framework for green taxation for EU
members.