ABSTRACT
Climate change is a pressing challenge facing 21st-century policymakers, with India facing severe consequences due to its geographical diversity. Rising emissions, coupled with increasing economic inequality, make it crucial to identify policy instruments that can both reduce pollution and support sustainable growth. One such instrument is the carbon tax, which has been implemented in several countries to curb emissions while raising government revenue. The paper examines the case study of Canada and the EU, to analyse the effectiveness of carbon tax. Drawing on these lessons, this study suggests a phased strategy for enacting a carbon tax in India and highlights potential economic barriers like inflation, industry resistance, and enforcement problems. This study suggests an initial tax rate of $10 per tonne of CO2 emissions for India. The study also notes that the rate should be viewed as a baseline for phased implementation, open to future adjustments based on performance. In order to guarantee that the tax is both practical and politically feasible, it highlights the necessity of revenue redistribution, public awareness initiatives, and specific exemptions for industries that are particularly vulnerable. By tailoring global lessons to India’s unique economic and political context, this paper bridges an important gap in the literature. Hence, a well-structured carbon tax could be a major contributor to India’s progress to a net-zero future.
AUTHOR AFFILIATIONS
Atma Ram Sanatan Dharma College, University of Delhi, Delhi, India
CITATION
Sodhi A and Biswas SM (2025) Carbon Taxation in India: A Policy Feasibility Study. Environmental Science Archives 4(2): 720-727.
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