Carbon Taxation in Trinidad and Tobago: Our Current Mooring

Abstract

In an era of environmental uncertainty, understanding carbon taxation can be necessary to understand where that jurisdiction can put it to use. Carbon taxation can be used to fund mitigation and conservation efforts, minimise carbon intensive actions and guide overall behaviour. This article seeks to explain carbon taxation generally and within the context of Trinidad and Tobago, and three existing instruments which can be transitioned to incorporating carbon prices. Incorporating carbon prices and introducing carbon tax instruments will need to answer the issues of increased compliance and equity costs and behavioural impacts and reactions. The jurisdiction will also have to assess and anticipate the effects of neighbouring nations implementing carbon taxation regimes, such as the challenge of carbon leakage.