CHILE SET TO PASS SOUTH AMERICA’S FIRST CARBON TAX
Chile is set to become the first country in South America—and the second in Latin America after Mexico—to institute a carbon tax. The tax, which will go before the Chilean House of Representatives this week, would impose a $5 tax per ton of carbon dioxide starting in 2017. The measure is part of a broader package intended to reduce air pollution that also includes taxes on particulate matter, nitrogen oxides, and sulfur dioxide. The Chilean government hopes that the financial burden of using fossil fuels will encourage greater investment in renewable energy. According to Gariazzo Rodrigo Pizarro, head of the division of environmental economics in the Chilean government, the government believes that “changing the price allocation through taxes is enough to generate a greener economy.” The revenue generated by the new tax will likely be used fund Chile’s sweeping education reforms. For the full story, see http://www.rtcc.org/2014/08/28/chile-set-to-pass-latin-americas-second-carbon-tax/.