In pursuance of Section II, Section III presents a schemata illustrating the constraining
influence of today’s deleterious environmental practices on the welfare of future generations
even if today’s generation had the good intention Ofbequeathing the pecuniary maximum for
posterity. Therefore, revenue could be derived by targeting the sources of environmental
degradation, and the revenue used for achieving global development objectives.
Section IV considers some alternatives of environmentally oriented taxes that could
hypothetically be designed for global revenue generation. The list comprises much discussed
sources such as a carbon tax, charges or taxes on international transport, as well as tradeable
or marketable permits. It is found that not all feasible national instruments are necessarily
suitable for global use. A carbon tax is likely to fare best as a global tax but, in order for
such a policy to be successful, a case is made for the imposition of a minimum global carbon
tax.
Section V attempts a critique of international financial transactions as a potential base
for a global tax. While the option of using environmental degradation or its proxies as an
alternative base possesses the quality of a double dividend—reduction in environmental
degradation and generation of revenue—the use of international financial transactions as the
base offers a single dividend—revenue—but is likely to distort international financial flows.
Section VI discusses selected recent experiences in international treaty making with
the objective of gauging the feasibility of introducing a global tax. It then raises global tax
administration issues that are needed to be kept in mind if the implementation of a global tax
is to be successful. Section VII concludes.
ɪɪ. Why Global Taxes?
The justification for global taxes is couched in terms of intergenerational and
intragenerational equity. Such a tax on environmental degradation would preserve the
environment for the future. The revenue from a global tax could be used to redress poverty.