Green Taxation
Lecture 1: Social Challenges for taxation
Some Key critical developments
a. Challenges
i. Global: overexploitation of the Earth and concentration of power.
ii. Local: varying from poor sanitation to opioids crisis.
b. Fragmentation:
i. Transition from OECD power to Power of Blocks.
ii. Internal fragmentation: two main opposing views in politics.
1. Global challenges
Socio-economic trends: Earth system trends:
Urban population, water use, paper carbon dioxide, surface temperature, ocean
production… acidification…
Planetary boundaries (environmental): are like the safety limits of the Earth. They describe how
much humans can change or damage big natural systems, such as the climate, forests, oceans,
biodiversity, and water cycles, before the planet becomes unstable. Think of Earth as a machine
with parts that must stay within certain ranges to work well.
The slide shows that the availability and control of natural resources, like lithium (essential for
batteries), create global challenges such as inequality and concentration of power.
- Resource availability: There’s a limited amount of critical materials (like lithium, water, oil,
etc.). Not all countries have access to them.
- Unequal distribution: Some regions have plenty of resources; others depend on imports.
This leads to economic and geopolitical tensions.
- Power concentration multinationals:
A small number of large global corporations control extraction, processing, and trade.
This creates economic dependency and can lead to exploitation of local resources and
communities.
→ These issues connect to climate policy, sustainable development, and social justice.
,Green Taxation
2. Local challenges
Focuses on problems that affect specific communities or countries, rather than the whole world
(like the previous slide did with global issues).
It divides these local challenges into health and social categories.
a. Health challenges:
i. Poor sanitation: Many areas lack clean water and proper waste systems. This
causes diseases such as infections, especially in developing regions.
ii. Obesitas: In richer or urban areas, access to unhealthy, processed foods and
sedentary lifestyles have made obesity a major health crisis. Risk of diabetes.
iii. Opioids: Refers to the opioid crisis, mainly in countries like the U.S. It’s about
addiction to painkillers and synthetic drugs like fentanyl, leading to many deaths
and social problems.
b. Social challenges:
i. Child labor: In many developing countries, children work instead of going to
school. This is often due to poverty, lack of education systems, or exploitation in
supply chains (e.g., mining, textiles, agriculture).
ii. Other exploitation of laborers: Includes unfair wages, unsafe working conditions,
or modern slavery. Even in developed countries, migrant workers or factory
workers can face exploitation.
3. International fragmentation
International fragmentation: means that the world is becoming less unified politically and
economically. Countries and regions are forming different alliances, interests, and power
centers, instead of following one dominant global order..
Gradual transition from OECD power to Power Blocks: shifting GDP.
- Before: Power Concentrated in the OECD → (USA, Europe, Japan, etc.)
For decades, these countries dominated the world economy, trade rules (WTO, IMF…)
and global political decisions.
- Now: Power Is Being Divided Into “Blocs”, new strong groups are emerging:
a. China and its economic influence.
b. BRICS (Brazil, Russia, India, China, South Africa, and new members).
c. Emerging countries.
, Green Taxation
Power is no longer only in the U.S. + Europe, there are now several competing centers of
power. → This is what is called international fragmentation.
GDP Maps (1970 vs 2019):
In 1970 → Rich countries (USA, Europe, Japan) had almost all of the world’s wealth.
In 2019 → China, India, and other non-Western countries have grown enormously. Economic
power is now more widely distributed.
Recent News Confirms This, the latest images show headlines about conflicts and
disagreements:
1. The U.S. imposing tariffs (Trump) → Countries fighting over economic interests.
2. China surpassing clean-energy targets → A sign that China is taking on a stronger
global role.
3. The EU debating tariffs on Chinese cars → Europe is internally divided and
simultaneously in external conflict with China.
3.1. Internal fragmentation in politics
compares two ways of viewing politics today: Autocracy (usually far-right) vs. Democracy
(liberals and the left):
Autocracy (right) Democracy (liberals and left)
Challenges (los problemas) fake serious
Action Not necessary (believes there’s no Requires action (believes action is needed
need to take action) now)
Evidence based knowledge Destroy (destroys it or ignores it) Exploit (uses it or “relies on” it)
(lo que dicen los datos o la
ciencia)
Citizens rights Limit Grant (los concede)
Rule of law Dependent on who is in power Independent (independientes del poder
político)
Markets Free entrepreneurship and Limited by regulation (libre pero con
property rights (libre total, sin regulaciones)
reglas)
, Green Taxation
Governments (and Use power for own benefit Us power for common good
international cooperation)
4. Global responses: SDGs
What are the SDGs: The Sustainable Development Goals are 17 goals that all the countries in
the world promised to follow to make the planet better before the year 2030.
- The goals include things like: no more poverty, clean water, education for everyone,
clean energy, equality, rotecting the planet…
What does the UN say?
Explains that all countries agreed on this agenda in 2015.
1. They are goals to protect the planet and ensure a good life for everyone.
2. They are universal: everyone must participate (rich, poor, big, small).
3. The goals are interconnected: improving one helps improve the others.
→ The UN says this agenda is a “guide for a sustainable world.”
Why are the SDGs Important?
a. SDFs do not focus on GDP only because it is not the only thing that matters, social
welfare also matters.
b. Explicit recognition of many concerns such as environmental sustainability (the planet
has limits and policies must respect these limits), but there are also health problems or
lack of schools.
c. Not only lip service but also actual implementation.
So SDGs = targets + monitoring + implementation.
d. Rich countries can’t treat SDGs as something only developing nations must work on —
they also must change their policies.
The SDGs help, BUT the world is chaotic and contradictory.
1. Globalization creates inconsistencies:
Example: A country seems sustainable because it produces little CO₂, but it consumes
products made in countries that pollute a lot.
→ It’s like keeping your house clean by dumping all your trash in your neighbor’s home.
Lecture 1: Social Challenges for taxation
Some Key critical developments
a. Challenges
i. Global: overexploitation of the Earth and concentration of power.
ii. Local: varying from poor sanitation to opioids crisis.
b. Fragmentation:
i. Transition from OECD power to Power of Blocks.
ii. Internal fragmentation: two main opposing views in politics.
1. Global challenges
Socio-economic trends: Earth system trends:
Urban population, water use, paper carbon dioxide, surface temperature, ocean
production… acidification…
Planetary boundaries (environmental): are like the safety limits of the Earth. They describe how
much humans can change or damage big natural systems, such as the climate, forests, oceans,
biodiversity, and water cycles, before the planet becomes unstable. Think of Earth as a machine
with parts that must stay within certain ranges to work well.
The slide shows that the availability and control of natural resources, like lithium (essential for
batteries), create global challenges such as inequality and concentration of power.
- Resource availability: There’s a limited amount of critical materials (like lithium, water, oil,
etc.). Not all countries have access to them.
- Unequal distribution: Some regions have plenty of resources; others depend on imports.
This leads to economic and geopolitical tensions.
- Power concentration multinationals:
A small number of large global corporations control extraction, processing, and trade.
This creates economic dependency and can lead to exploitation of local resources and
communities.
→ These issues connect to climate policy, sustainable development, and social justice.
,Green Taxation
2. Local challenges
Focuses on problems that affect specific communities or countries, rather than the whole world
(like the previous slide did with global issues).
It divides these local challenges into health and social categories.
a. Health challenges:
i. Poor sanitation: Many areas lack clean water and proper waste systems. This
causes diseases such as infections, especially in developing regions.
ii. Obesitas: In richer or urban areas, access to unhealthy, processed foods and
sedentary lifestyles have made obesity a major health crisis. Risk of diabetes.
iii. Opioids: Refers to the opioid crisis, mainly in countries like the U.S. It’s about
addiction to painkillers and synthetic drugs like fentanyl, leading to many deaths
and social problems.
b. Social challenges:
i. Child labor: In many developing countries, children work instead of going to
school. This is often due to poverty, lack of education systems, or exploitation in
supply chains (e.g., mining, textiles, agriculture).
ii. Other exploitation of laborers: Includes unfair wages, unsafe working conditions,
or modern slavery. Even in developed countries, migrant workers or factory
workers can face exploitation.
3. International fragmentation
International fragmentation: means that the world is becoming less unified politically and
economically. Countries and regions are forming different alliances, interests, and power
centers, instead of following one dominant global order..
Gradual transition from OECD power to Power Blocks: shifting GDP.
- Before: Power Concentrated in the OECD → (USA, Europe, Japan, etc.)
For decades, these countries dominated the world economy, trade rules (WTO, IMF…)
and global political decisions.
- Now: Power Is Being Divided Into “Blocs”, new strong groups are emerging:
a. China and its economic influence.
b. BRICS (Brazil, Russia, India, China, South Africa, and new members).
c. Emerging countries.
, Green Taxation
Power is no longer only in the U.S. + Europe, there are now several competing centers of
power. → This is what is called international fragmentation.
GDP Maps (1970 vs 2019):
In 1970 → Rich countries (USA, Europe, Japan) had almost all of the world’s wealth.
In 2019 → China, India, and other non-Western countries have grown enormously. Economic
power is now more widely distributed.
Recent News Confirms This, the latest images show headlines about conflicts and
disagreements:
1. The U.S. imposing tariffs (Trump) → Countries fighting over economic interests.
2. China surpassing clean-energy targets → A sign that China is taking on a stronger
global role.
3. The EU debating tariffs on Chinese cars → Europe is internally divided and
simultaneously in external conflict with China.
3.1. Internal fragmentation in politics
compares two ways of viewing politics today: Autocracy (usually far-right) vs. Democracy
(liberals and the left):
Autocracy (right) Democracy (liberals and left)
Challenges (los problemas) fake serious
Action Not necessary (believes there’s no Requires action (believes action is needed
need to take action) now)
Evidence based knowledge Destroy (destroys it or ignores it) Exploit (uses it or “relies on” it)
(lo que dicen los datos o la
ciencia)
Citizens rights Limit Grant (los concede)
Rule of law Dependent on who is in power Independent (independientes del poder
político)
Markets Free entrepreneurship and Limited by regulation (libre pero con
property rights (libre total, sin regulaciones)
reglas)
, Green Taxation
Governments (and Use power for own benefit Us power for common good
international cooperation)
4. Global responses: SDGs
What are the SDGs: The Sustainable Development Goals are 17 goals that all the countries in
the world promised to follow to make the planet better before the year 2030.
- The goals include things like: no more poverty, clean water, education for everyone,
clean energy, equality, rotecting the planet…
What does the UN say?
Explains that all countries agreed on this agenda in 2015.
1. They are goals to protect the planet and ensure a good life for everyone.
2. They are universal: everyone must participate (rich, poor, big, small).
3. The goals are interconnected: improving one helps improve the others.
→ The UN says this agenda is a “guide for a sustainable world.”
Why are the SDGs Important?
a. SDFs do not focus on GDP only because it is not the only thing that matters, social
welfare also matters.
b. Explicit recognition of many concerns such as environmental sustainability (the planet
has limits and policies must respect these limits), but there are also health problems or
lack of schools.
c. Not only lip service but also actual implementation.
So SDGs = targets + monitoring + implementation.
d. Rich countries can’t treat SDGs as something only developing nations must work on —
they also must change their policies.
The SDGs help, BUT the world is chaotic and contradictory.
1. Globalization creates inconsistencies:
Example: A country seems sustainable because it produces little CO₂, but it consumes
products made in countries that pollute a lot.
→ It’s like keeping your house clean by dumping all your trash in your neighbor’s home.
