INSIGHT: Is Solar Power Adoption Hindered by an Inadequate Global Environmental Tax Policy?

Tax policy could encourage the adoption of solar power on a global scale. Selva Ozelli examines the strength and weaknesses of policies in the jurisdictions with the greatest carbon emissions.

Solar energy could provide an affordable source of power for the increasingly power-hungry digital technology industry. This article discusses the environmental tax, digital technology, and solar energy policies of the countries that are the world’s six largest carbon dioxide (CO2) emitters. Multinational corporations should pay attention to environmental tax policy because in the past two years there has been a particularly strong increase in corporate internal carbon pricing initiatives in China, Japan, Mexico, and the U.S. Companies that haven’t yet adopted an internal price/tax will soon have to do so, as investors demand more and more insight into the risks of climate disruption, according to the 2019 Status Report prepared by the Task Force on Climate-related Financial Disclosures (TCFD).

New digital technologies could replace a majority of jobs and necessitate very high consumptions of electric energy—currently produced with coal and fossil fuels with adverse environmental effects. According to the study The Carbon Footprint of Bitcoin, from Technical University of Munich and Massachusetts Institute of Technology, cryptocurrency mining alone generates about 22 megatons in CO2 emissions each year.

Originally posted here: Is Solar Power Adoption Hindered by an Inadequate Global Environmental Tax Policy?

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