Carbon tax for Vistra Energy, USA
Efforts to minimize greenhouse gas emissions are taking place at the world, federal, and sub-national levels (e.g., individual state actions or regional partnerships). A carbon tax is a frequent term for this sort of strategy, whether it is applied to carbon pollution alone or to a variety of GHGs, as well as some that do not include molecular carbon at all’. In this report, there is not a full evaluation and discussion on the many policy options that European Union has available to combat climate change as part of greenhouse gas emission (Aboelmaged & Hashem, 2019). Instead, the emphasis of the report is on the policy implications of imposing a carbon tax as a means of reducing global warming pollution. Taxes may be imposed for a number of reasons by governments. In order to pay for things like national defense, public education, state pensions, and other necessities, governments levy taxes. Proponents of pollution taxes argue that these taxes would force polluters to pay for environmental damage in the form of higher prices for their goods and services. In order to reduce greenhouse gas emissions, policymakers might impose a tax on the emissions themselves or on the materials used to produce them. A carbon tax would help reduce Greenhouse Gas emissions by putting a price on them.
A carbon tax method to reducing GHG emissions is examined in this report for four possible benefits. According to many economists like Vistra Energy, a carbon tax would be more effective than a cap-and-trade system in terms of economic efficiency (Dimoudi & Tompa, 2018). This is the first part of the report's analysis. A carbon tax, it is said, would give price stability, which is an important consideration for consumers. Discussing the advantages of collecting carbon tax income and the trade-offs that would arise is the focus of the third session. A carbon tax method may have benefits, mainly in terms of implementation, according to the report as stated below:
When the mitigating agency cost curve is unclear, a tax may be more cost effective than an emissions limit. This is a key reason for the implementation of a carbon tax." It is important to note, however, that this reasoning rests on assumptions that have been the topic of extensive discussion. An examination of the fundamental assumptions is provided in this section. As a result, some believe that the danger of irreversible climate change necessitates that economic efficiency takes a back seat to precise control of GHG reductions, which can only be achieved with a quantity-based emissions restriction (MURRAY, et al., n.d.). To put it another way, this approach is an implementation of the precautionary principle, which advocates being flexible in the face of danger. Researchers and economists may obtain information on the costs and advantages of reducing GHG emissions even when emissions are kept at a predetermined level. Climate change policies may be adjusted as needed when new knowledge becomes available.
Carbon tax or cap-and-trade are two options for limiting GHG emissions, and both have the potential to cause short-term fluctuations in either emissions or pricing (months to years). Sulfur dioxide emissions cap-and-trade program price volatility is often used by supporters of a carbon tax. The price of a sulfur dioxide permit changed by a factor of 12 between 2001 and 2006. There are also additional reasons causing price volatility, such as concern about upcoming regulatory changes, that make it difficult to overcome (e.g., The Clean Air Interstate Rule). Natural gas prices for consumers were not affected by the sulfur market price volatility, but carbon emission permits might have a greater impact on the US economy since fossil fuels accounted for more than 85% of the country's energy consumption in 2006 (Al-Homoud, n.d.). Carbon taxes and auction proceeds are not dependable sources of financing from a public finance viewpoint since an effective carbon price (created via a tax or a limit) is anticipated to affect consumer preferences (e.g., demand for carbon-intensive goods). However, the income stream from a carbon tax might be more reliable than the source of funding from an allowance auction since the tax has a given value whereas the price of an emission allowance fluctuates.
Economic efficiency
A cap-and-trade scheme has numerous implementation benefits over a carbon tax, depending on the formulation. A discussion of each of them is provided below:
A carbon price may be simpler to explain and comprehend than a cap-and-trade system, according to some. The complexity of a cap-and-trade system may make it difficult to implement. Follow, especially the allotment of emission allowances. Cap-and-trade programs will grow more complicated and maybe less transparent if policymakers incorporate more flexible design components, largely to enhance efficiency and reduce price volatility (MURRAY, et al., 2011). The greater transparency of a carbon price, according to others, would help it gain the implementation benefits to solve GHG. Many say that the United States tax law is too complicated to implement a carbon tax. The intricacy of a cap-and-trade scheme may be matched by a carbon tax system established by Congress. A carbon price that exclusively applies to CO 2 emissions from fossil fuel burning will be much more transparent than a carbon tax that addresses non-CO 2 GHG sources.
The United States already has a well-established system for collecting taxes. Furthermore, gasoline sales have a long history, and they are now taxed in some form (for a variety of reasons). It is therefore possible to use this existing structure for a carbon price on fossil fuels if it is implemented upstream in the economy." However, if a carbon tax covered additional GHG emissions or their inputs, this administrative system would not be a benefit. There are several variables to consider when making a comparison between carbon taxes and other forms of taxation, including the design of the instruments under consideration (MURRAY, et al., 2011).
There may be more difficulty in implementing a cap-and-trade system in which the cap is imposed on a greater number of sources. Policymakers would also need to create a method for allocating emission permits to covered sources if a cap-and-trade scheme were to give emission allowances at no cost. To ease this duty, auctions may be used to sell emissions permits, but this would increase administrative burden and raise worries about market manipulation.
In comparison to a cap-and-trade GHG emission reduction scheme, a carbon price may have various drawbacks. The amount and/or relevance of the disadvantages depends on the design of the initiatives being compared, just as it does with the prospective benefits.
Different processes' consequences may be measured using the Life Cycle Assessment (LCA) methodology, which makes comparisons and decisions easier. There is a plethora of ways to deal with plastic garbage, but figuring out which ones have the least negative influence on the environment is tough (Behnam, et al., 2018). LCA studies that are suitable for comparison are found via a screening procedure and the methodology utilized and the results of the LCA studies are evaluated. Researchers conducting LCAs must specify their objectives and context while determining the scope and limits of the study, resulting in a broad range of approaches.
A class of organic molecules known as plastics is manufactured traditionally from fossil fuels; however, unique bioplastics may be generated from sustainable biomass sources. Plastics are semi-synthetic organic chemicals. As a result of their malleability, plastics may be molded into almost any shape. It is possible to alter their opacity, thickness, elasticity, and thermal characteristics by using the right chemicals. It's no surprise that plastic has become so pervasive in modern society. In general, two types of plastics are utilized in everyday life: thermoplastics and thermosets (Aboelmaged & Hashem, 2019). When heated, thermoplastics soften, whereas thermoset plastics stiffen, preserving their original shape. Soda bottles and PVC pipes are thermoplastics, whereas plugs, kettles and other electrical appliances are constructed of thermoset polymers.
Price stability
There are two types of plastic: "engineered" and "biobased." Organic materials such as carbohydrate and starch as well as vegetable oils and microorganisms are used to produce biobased polymers rather than petroleum-based ones. The ease with which raw petroleum may be assembled means that the vast majority of today's plastics are designed with this in mind.
Figure 1: Life cycle of a plastic (Research gate)
The life cycle of plastic products has revealed that the typical linear model from birth to incarceration is an unworkable relationship that results in pollution. Polyethylene (PE) and polypropylene (PP) are non-biodegradable, therefore discarded garbage accumulates on the ground and in waterways, where it is eaten by animals and delivers dangerous synthetics to our living environment (Carlisle, et al., 2008).
It is widely accepted that systems thinking is essential to understanding and tackling climate change. An ecological ethic or value system based on the idea that people should protect and conserve nature rather than exploit it might be made possible via the use of systems thinking. As a result of this, climate change awareness and pro-climate sentiments may become stronger. Global warming ideas and attitudes are regularly linked to a belief in systems thinking, a conceptual framework in which people see things as interrelated and dynamic.
Instead of having a direct impact on climate change ideas and attitudes, systems thinking may have a distal and indirect effect. According to the findings, adopting a New Ecological Paradigm-based worldview various interaction models, substantial indirect effects have repeatedly shown a favorable association between systems thinking perceptions and opinions to global warming System thinking loses its predictive power when an ecological paradigm is introduced as an intermediary, save for knowledge of the scientific consensus. People may acquire a broad pro-environmental value system via systems thinking, which then impacts their ideas and attitudes concerning climate change more narrowly (Aboelmaged & Hashem, 2019).
The world needs populations that is able to comprehend dynamic and complicated challenges, to engage with transformative change, and to invent solutions to new dangers and disruptions"
1. Steps involved in the process of innovation, challenges and recommendations on how to overcome challenges for driving sustainable innovation in organizations:
Based on the principle of potential and respect for human values, sustainable development provides a framework for structuring. Human wants and ideals are at the heart of innovation. When there aren't clear market signals and a common language, it might be difficult to perceive the relationship between innovation and the lack of clear market signals and a common language. Design concept and technological innovations allow us to operate more intelligently and more sustainably, but this knowledge also raises questions, such as the repercussions of the size and breadth of application. Effective use of these instruments requires an awareness of what the general public expects and the ability to supply those demands both economically and without arousing alarm or suspicion (Waloszek, 2012).
Global solutions to global problems are at the heart of GEOPolity's mission. New regulations and regulatory systems for industries to follow are established by its institutions. These global organizations may collaborate with corporations in order to tackle some of the world's most pressing issues. Therefore, this is the situation that will lead to the development of global technologies and large infrastructure projects throughout the globe in the near future.
Implementation benefits
The inception stage is when fresh concepts are first conceived. The push to contend and the freedom to explore are both necessary for a successful idea generating process. Thereafter, the new concept enters the mobilization stage, when it is transferred to a new site. In many cases, a new invention need the involvement of a third party, as most innovators do not double as salespeople. Skipping this step might delay or damage the innovation process, therefore don't skip it. An example of an organization that supports effective idea creation by achieving a balance between whimsy and need is IDEO, the product innovation and branding business situated in Palo Alto, California, USA (Carlisle, et al., 2008).
This is the stage that provides a moment to evaluate an idea's advantages and disadvantages. Screening and advocacy must take place at the same time in order to filter out ideas that lack promise without enabling stakeholders to reject ideas based merely on their novelty. A study by the authors revealed that open and standardized processes for evaluating ideas led to more success in the workplace since individuals felt more at ease participating when they knew exactly their ideas would be reviewed (Carlisle, et al., 2008).
Ideas are tested at the evaluation level to see whether they can be sustained by an organization in its current setting and at a certain moment. It's critical at this point to identify the target client and the intended usage of the invention. As a result, the organization may find that although someone has a brilliant concept, it is either ahead of its time or simply not suited for a given industry. This is a possibility. These types of discoveries shouldn't be seen as failures, either; they might serve as springboards for even greater ones in the future (Aboelmaged & Hashem, 2019).
During the commercialization stage, the company should check with its consumers to see whether the invention really answers their issues, and then should examine the costs and advantages of rolling out the innovation in the market. They stress that "an invention is only regarded an innovation [after] it has been commercialized" The commercialization stage is crucial because it necessitates the involvement of the appropriate individuals in order to move a concept forward to the next level of development.
There are "two sides to every coin" when it comes to the dissemination and implementation phases, scholars say. Implementation is the process of putting up the structures, maintenance, and resources necessary to develop an invention, whereas diffusion is the process of attaining ultimate, company-wide acceptance. When it comes to spreading new ideas, one of the best examples is International Business Machines Corp., which holds "innovation jams" to which they invite not only their own workers but also customers, business partners, and even the families of those who work there. From the outset, IBM gives everyone a part in the concept (Behnam, et al., 2018).
Any radical technological development, regardless of System Design and Innovation (SDI), may be a challenging undertaking since it generally requires a departure from the current knowledge base (and hence is competency-destroying), as well as drastically different organizational, administrative, and infrastructural needs. It is common for companies to adopt incremental (or competency-enhancing) approaches since it enables them to continue reaping the benefits of their established technological and organizational competence foundation. Fuel providers, for example, may be unable to generate and transport hydrogen (the energy source for fuel cells) competitively and effectively, which might make it more difficult for consumers to accept a new invention like fuel cells in cars. Only a small portion of the tale is told by these technological difficulties (Carlisle, et al., 2008).
Potential disadvantages
The existence of basic requirements like groundwater, food security, and energy will be impacted by climate change for many people, while attempts to address climate change via adaptation and mitigation will similarly influence and define the global development agenda for the long run. There is a clear connection between climate change and sustainable growth. Most nations in poverty and developing, especially the least developed, will be hit the hardest and have the least resources to deal with the expected changes to their societal, economic, and ecological systems.
Design thinking is an approach to problem solving that takes into account the needs, wants, and values of the people who will use the final product. When it comes to design thinking, it's all about iteration and testing various options to find the best one. However, design thinking offers a number of traits that might be beneficial to sustainable business modeling. A possible shortcoming of the value mapping training is the challenge of expressing ideas and creating a clear understanding of the value propositions among interdisciplinary teams. In addition to its initial use in new product creation, design thinking is also being used to establish strategies, business models, and organizational structures in an ever-wider range of fields (Dimoudi & Tompa, 2018).
It was shown that design thinking and value mapping may be used to create sustainable company models. An investigation into the usage of design thinking and other design methodologies is encouraged by the authors of this paper. Conceptual innovation in design thinking may be used to a wide variety of design tools, implementations, and workshops. There are a number of ways in which these procedures may be improved by adding prototypes.
Sustainability, as per the World Commission on the Environment and Development, is "a kind of innovation that serves the demands of the current without jeopardizing the capacity of future generations to satisfy their own requirements." Construction workers have started to pay attention to environmental damage prevention and remediation as a result of their work in the building business. Environmental effect may be reduced throughout the design phase of a building project by implementing sustainability goals set by architects, designers, engineers, and other construction professionals.
When it comes to tackling micro-level (project specific) integrated decision-making, existing sustainability efforts, strategies and processes are clearly under-resourced. The big-picture perspective of how our actions influence more than just the present may be found in sustainable design. In order to ensure long-term customer happiness as well as environmental protection, a holistic approach to sustainable design is necessary. When it comes to sustainable design, this is all about the future, not the present. Process and product go hand-in-hand in sustainability. Ecological, economic, and ethical implications and costs of building goods may be evaluated and anticipated by "green" designers who see design as a process. Better long-term decisions are made when the big picture is considered early on in a project, and this contributes to improved ultimate effectiveness (MURRAY, et al., 2011). Designing with minimal environmental impact may be made easier through initiatives like Better Environmental and Economic Sustainability (BEES) and manufacturing systems like Leadership in Energy and Environmental Design. In order to establish if a design is sustainable, the Oak Ridge National Laboratory recommends asking the following questions:
- Is it expected to last a long time?
- Is it more environmentally friendly?
- Does it increase the robustness?
- Is it a source of pollution?
- Is it sustainable and recyclable?
Lifecycle Assessment Process for non-biodegradable
The provision of safe and healthy conditions for human habitation is one of the primary goals of a long-term, low-impact structure in green designing. Whether it's for working, dwelling, learning, curing or processing, a facility must be able to satisfy the needs of the people who will be using it. In addition, the building must provide a healthy and pleasant inside environment for its occupants (Carlisle, et al., 2008). The structure should not hurt its inhabitants or the environment and must, for example, be structurally stable and fire-safe in order to satisfy these fundamental standards. The following two design approaches should be explored in order to aid with green designing in order to support human adaptation:
Figure 2: Design for human adaptation (Waloszek, 2012)
Good health and a comfortable home are two of the most essential factors in a person's happiness. Buildings must give inhabitants with health, physiological comfort, happiness, and productivity in a contemporary culture where people spend more than 90% of their time inside and more than 75% of their hours in their own homes. Building performance may be measured in terms of health, which is an important consideration when trying to determine what is meant by "sustainable construction.” Human requirements must be balanced with the potential of environmental and cultural settings in order for an industry to be sustainable (Waloszek, 2012).
Occupants' enjoyment and productivity are directly linked to their level of thermal comfort. The purpose of any green building designer should be to ensure that the residents of the building or other enclosure are comfortable at all times. Temperature (air, radiation, surface), humidity, air movement, and personal factors are all components of the thermal environment. Clothes and degree of exercise. Planning and designing a workstation with regard to its acoustical environment is not a common practice. To provide a pleasant acoustic environment, noise from mechanical and electrical equipment as well as sources outside the structure must be controlled. Noise reduction from the outside can only be achieved with careful selection of windows, better insulation, and wall frame and resources to aid green designing. To lower construction and operations expenses, as well as improve productivity of occupants of the building, designing for natural ventilation may be beneficial. Another consideration should be the aesthetics of the building itself. For example, a fountain, plants, or an aquarium might be a natural feature that provides a sense of calm and relaxation. Because of this, the importance of aesthetics as a long-term consideration cannot be understated (Al-Homoud, n.d.).
One of the most fundamental elements of sustainable design and construction is the preservation of natural resources. Design considerations must be provided to integrate adaptive functioning against natural and man-made calamities, such as fire, earthquake, floods and criminality. There are a variety of approaches to reducing or eliminating the risk of injury and death, as well as damage to property, while dealing with hazardous situations (Waloszek, 2012).
In order to ensure the safety of a structure, the designer must use a systems approach that allows him or her to analyze the building's components as a whole. If you're designing a new building or other construction or renovation project, it's critical to think about the potential fire safety risks from the outset of your project. This includes the addition of retrofitting methods like the use of matrix composite veneer or vertical corner strengthening incorporated in mortar, as well as tie beams and buttresses in the brick and clay wall construction.
References
Aboelmaged, M. & Hashem, G. (. A. c. a. g. i. a. i. S. T. m. e. o. s. o. c. J. C. P. 2. 8., 2019. Absorptive capacity and green innovation adoption in SMEs: The mediating effects of sustainable organisational capabilities. s.l.:s.n.
Al-Homoud, M., n.d. Al-Homoud, M.S, (2015). Performance characteristics and practical applications of common building thermal insulation materials. Build. Envrion. s.l.:s.n.
Behnam, S., Cagliano, R. & Grijalvo, M., 2018. How should firms reconcile their open innovation capabilities for incorporating external actors in innovations aimed at sustainable development?. s.l.: J. Clean. Prod.
Carlisle, N., Elling, J. & Penney, T., 2008. A Renewable Energy Community: Key Elements; National Renewable Energy Laboratory Technical Report, Washington: s.n.
Dimoudi, A. & Tompa, C., 2018. Energy and environmental indicators related to construction of office buildings. Resour. Conserv. Recycl, s.l.: s.n.
Murray, A., Haynes, K. & Hudson, L. (. C. t. a. c. s. r. a. s. P. a. p. S. A. M. a. P. J. v. 1. n. 2. p. 1.-1., n.d. Volume . 1,.
Murray, A., Haynes, K. & Hudson, L. 2011. Collaborating to achieve corporate social responsibility and sustainability? Possibilities and problems. Sustainability Accounting Management and Policy Journal, Volume I, pp. 161-177.
Waloszek, G. 2., 2012. Introduction to Design Thinking. s.l.:s.n.
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