Potential Carbon Tax Imposition in Boosting Low-Carbon Green Economic Activity

One effort to combat global warming is the implementation of carbon tax as form of compensation for carbon emissions emitted by polluters, with goal of reducing carbon emissions and changing mindset of emission producers to increase efficiency in producing emissions from their industrial and switching to green economy. The purpose of this research is to determine potential of carbon tax in increasing low-carbon green economy. Coal-fired power plants will be the first to be taxed under the Carbon Tax. The Paiton Coal-fired Power Plant Company Units 1, 2, and 9 in 2019-2021 are sample in this study. This study's data analysis is a descriptive qualitative, which involves cross-referencing data on Carbon Tax rate with data on disclosure of carbon emissions from coal-fired power plants, which is then analyzed with supporting references from laws, presidential regulations, and scientific journals. The Carbon Tax will force individuals to consider consequences of polluting actions. Carbon tax policy allows for economic distortions, the implementation must be done at the right time and with a fair mechanism. The proceeds from carbon tax will be used to fund community's welfare sector as well as development of renewable energy. The Carbon Tax Mechanism should based on fairness principles.