Reality check : the prospect of introducing carbon taxes in China

Since its announcement a year ago, the prospect of a carbon tax being introduced in China as early as 2015 is receiving increased media attention in many quarters, particularly in Australia. Along with the implementation of carbon taxes in several Scandinavian countries for some two decades, national or state-based actions and pilot plans have begun to emerge in many major developed countries. Nevertheless, considering the uncertainties following the expiration of the Kyoto Protocol, as well as the nation’s political and economic circumstances, whether and how to introduce such a tax remains extremely controversial. This was certainly evident in the case of Australia, where a carbon tax, set at an initial price of $23 per ton, began in July 2012.