Carbon Credit and Carbon Tax

Carbon Credit and Carbon Tax

Carbon credit and carbon tax: Other sources of Revenue for Nigeria Emissions that aren’t with the production of industrial and consumer goods should be taxed. A carbon tax is one of the tool government used to check climate change. The two is emission and offset trading system (that encourage carbon credit). Government intervention is a tool to fight climate change. The government uses two methods as discussed below to put climate change in a check (Carbon Emission Accounting and Economic Growth in Nigeria). 1). QUANTITY-BASED The Quantity-based measures depend on regulations to check climate change. The quantity-based measures are called emission and offset trading systems or cap and trade. Quantity-based measures are the most common interventions by any government. In quantity-based believes that each country/company is assigned a fixed amount of carbon emissions which is a cap/limit by the government, measured in carbon credits. When a company emits less than permitted emissions, it can sell the rest to companies that are unable to reduce their emissions level.  This method can earn companies that are meeting up with a cap limit by the government, huge revenue. Government through the agency(NESREA ) reduces the emission caps each year to set a new pollution target and allocate new emission limits to industries. This way, companies are forced to seek other ways to meet their energy needs, thereby embracing green technology. The carbon credits of a company are rights for emission. Each unit gives the right to emit one metric tonne of CO2. A carbon credit is a permit that allows the company that holds it to emit a certain amount of carbon...
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