How does a carbon tax work?

By taxing emissions, it incentivizes businesses to update their operations so they reduce their contribution to global warming.

A carbon tax requires 3 key elements:

Pricing – governments must set a price on greenhouse gas emissions.

Monitoring – we need a reliable way to measure the amount of emissions released by companies.

Enforcement – taxes, fines, and other methods for enforcing the carbon tax must be put in place to keep companies honest.

Some countries have already implemented carbon taxes.

Center for Climate and Energy Solutions

Leave a Reply

Your email address will not be published. Required fields are marked *