As an emerging economy, should Malaysia adopt carbon taxation?. Issue 1 (February 2019)

• Record Type: Journal Article
• Authors: Wong, Kum Yeen; Chuah, Joon Huang; Hope, Chris
• Is Part Of: Energy & environment. Volume 30:Issue 1(2019)
• Page Start: 91
• Page End: 108
• Publication Date: 2019-02
• Subjects: Carbon tax -- climate change -- sustainability -- environmental policy -- taxation -- emerging economy -- Malaysia; Power resources -- Environmental aspects -- Periodicals; Power resources -- Periodicals; Renewable energy sources -- Periodicals; Energy policy -- Environmental aspects -- Periodicals; Ressources énergétiques; Politique énergétique; Energy policy -- Environmental aspects; Power resources; Power resources -- Environmental aspects; Renewable energy sources; Periodicals; 333.7
• DOI: 10.1177/0958305X18787273
• Languages: English
• ISSNs: 0958-305X

Abstract

On 1 July 2014, the Australian Government announced the abolition of its new carbon tax policy barely two years into implementation. The Australia's policy U-turn raises a very important question: Should an emerging economy such as Malaysia adopt carbon and climate change policy as part of a larger tax reform? In order to answer this, the key issues, main driving forces and barriers in the use of carbon tax as an incentive-based instrument for economic and environmental policies purposes are examined. With the recent global climate challenges and the fiscal needs of the national budget, it is submitted that the implementation of a carbon tax framework in Malaysia should be regarded not as an ultimate goal in itself but as a starting point to develop the right behavioural response for a better and more comprehensive national fiscal and climate policy reform in the future.