Analysis of taxation of petroleum and derivatives in terms of taxation

Carbon emissions caused by the widespread and rapidly expanding use of coal, oil and fosil fuel burning for increasing production and consumption have been shown to have undersirable consequences. Carbon dioxide, methane, nitrous oxide and chlorofluocarbons identified as greenhouse gases, are believe by scientist to trap outbound sun radiation, warming the atmosphere and inducing climate change. In recent years, the growing concern about the negative environmental impacts of energy production and consumption has revived the interest in studying the energy structure of different sectors of economy. Carbon dioxide emissions are believed to be responsible for approximately half of the man made contributions to the greenhouse effect. Carbon tax is the policy instruments for available for reducing CO2 emissions. For sustainable devolopment, environmental condition is important. Carbon tax and energy taxes are about oil consumption. A reasonable goal is to reduce pollution to a level that takes full account of both the costs of the pollution and the benefits of the polluting activity. Taxes are often more effective than regulation as a way to achieve this. The study is about impacts oil consumption and carbon taxes . Use taxes that are about oil, is an interesting policy option and that their main impacts is about fiscal revenues and non-financial targets.