The Influence of Sweden's Carbon Tax on Global Environmental Diplomacy

Abstract

Climate change has become a problem for countries around the world, because it can lead to food crises, extreme temperature rises, increased potential for natural disasters and endangered flora and fauna. The triggers of climate change come from human activities. Human activities that affect climate change include burning fossils, petroleum, natural gas and coal. All of these activities will produce carbon emissions. To overcome the problem of carbon emissions, many efforts have been made by the international community. One of the countries that has succeeded in the carbon emission problem is Sweden. Sweden solved the carbon emission problem through a carbon tax that started in 1991. The carbon tax is imposed on all public activities that produce carbon emission gases. The purpose of this study is to find out how the Swedish carbon tax affects environmental diplomacy. This research utilises the Pigouvian Tax theory proposed by Arthur Cecil Pigou. The research method used in this study uses a qualitative method with a literature study approach. The results of this study show that Sweden's position on the international stage is getting better. This is due to Sweden's success in implementing a carbon tax without destabilising its economy. Several countries around the world have joined Sweden in implementing similar policies. In addition, Sweden also has a significant contribution, being the first country to ratify the Kyoto treaty which aims to reduce greenhouse gas emissions.