<P> As of the year 2002, the standard carbon tax rate since 1996 amounts to 100 DKK per tonne of CO, equivalent to approximately 13 Euros or 18 US dollars . Net carbon emission tax from fuel combustion can vary depending on the level of pollution each source emits, the tax rate varies between 402 DKK per tonne of oil to 5.6 DKK per tonne of natural gas and 0 for non-combustible renewables . The rate for electricity is 1164 DKK per tonne or 10 øre per kWh, equivalent to . 013 Euros or . 017 US dollars per kWh . The CO tax applies to all energy users, including the industrial sector . But the industrial companies can be taxed differently according to two principles: the process the energy is used for, and whether or not the company has entered into a voluntary agreement to apply energy efficiency measures . Danish policies like this provide incentives for companies to put in place more sustainable practices similar to a cap and trade program on carbon dioxide . </P> <P> In 1992 Denmark issued a carbon dioxide tax, which was about $14 for business and $7 for households, per ton of CO . However, Denmark offers a tax refund for energy efficient changes . One of the main goals for the tax is to have people change their habits, because most of the money collected would be put into research for alternative energy resources . </P> <P> Finland was the first country in the 1990s to introduce a CO tax, initially with few exemptions for specific fuels or sectors . Since then, however, energy taxation has been changed many times and substantially . These changes were related to the opening of the Nordic electricity market . Other Nordic countries exempted energy - intensive industries, and Finnish industries felt disadvantaged by this . Finland did place a border tax on imported electricity, but this was found to be out of line with EU single market legislation . Changes were then made to the carbon tax to partially exclude energy - intensive firms . This had the effect of increasing the costs of reducing CO emissions (p. 16). </P> <P> Vourc'h and Jimenez (2000, p. 17) stated that arguments based on competitive losses needed to be viewed with caution . For example, they suggested that carbon tax revenues could be used to reduce labour taxes, which would favour the competitiveness of non energy - intensive industries . </P>

Which country was the first country to impose carbon tax