The statistics provided from the Lancet Commission report highlight the severity of air pollution in India, with a significant number of premature deaths attributed to it. Additionally, the study on children’s lung health underscores the long-term health impacts, particularly on vulnerable populations like children.
The concept of a carbon tax is indeed gaining traction globally as a means to mitigate climate change and reduce air pollution. By imposing a fee on carbon emissions, it incentivizes individuals and industries to reduce their reliance on fossil fuels and adopt cleaner alternatives.
The economic rationale behind carbon taxes well, particularly focusing on the concept of negative externalities. When the costs of pollution are not borne by the polluters themselves but instead imposed on society at large, it creates market distortions. Carbon taxes aim to internalize these costs, aligning economic incentives with environmental goals.
While the concept of carbon tax seems straightforward in theory, its implementation can be complex. Determining the appropriate tax rate, ensuring compliance, and addressing potential regressive impacts on low-income households are among the challenges that policymakers need to consider.
It’s worth noting that carbon pricing mechanisms, including carbon taxes and cap-and-trade systems, vary in their design and implementation across different countries and regions. Learning from international experiences and tailoring policies to the specific context of India can help maximize effectiveness. There is the urgent need for effective measures to tackle air pollution in India, with carbon taxation emerging as a promising policy tool to internalize the external costs of pollution and incentivize cleaner energy alternatives.
