Abstract:
Green house gases are key crisis facing a world and have been a theme of debate for several years. Many countries have imposed a range of measures to cut down the emissions of green house gases (GHGs) from industries and other sources to lessen pollution. Measures include, Environmental taxes (e.g. green tax), Permits (e.g. tradable permit, and grandfathered permit), and Tax relief and Subsidies. The methods have been extensively used but experience shows that not all were able to regulate emission economically. The Cost Benefit of these methods is seemingly confusing. Above all, international treaties such as Kyoto Protocol were implemented calculatedly to curb emissions by countries though they face resistance by key emitters like US.
Tanzania, like many other developing countries, has a role to play in this move. Economic advancement such as industrialization which in most cases includes use of environmental unfriendly technology, and unsustainable use of forest resources such as cutting trees has been a major source of green house gases. Yet still the penal laws such as environmental laws and environmental regulation are used as main control measures, but it is argued that these instruments can not efficiently regulate emission in the country. The recommended supplementary regulators are economic-oriented such as green taxes, and subsidies. Economic efficiency theory suggests that the polluters (firm, individual or government) should pay full cost of environmental damage (e.g. GHGs emission) caused by its activity. This is expected to create incentives for the reduction of such damage at least to the level where the marginal cost is equal to the damage caused by such damage (Turner, Pearce and Bateman, 1994: 46). In this brief essay I intend to look at the feasibility of green tax scheme as a recommended emission control instrument in Tanzania. The following sections describe briefly the emission situation in the country, the emission control measures, policy and green taxation in Tanzania, constraints, and the last section is the conclusion.
