How does a carbon tax affect emissions?

What is a carbon tax and how does it work?

A carbon tax is a fee imposed on the burning of carbon-based fuels. It aims to reduce carbon emissions by making fossil fuels more expensive.

How does implementing a carbon tax actually reduce emissions?

By increasing the cost of carbon emissions, a carbon tax incentivizes businesses and individuals to reduce their fossil fuel consumption and invest in cleaner energy alternatives.

Are there any countries that have successfully used a carbon tax?

Yes, countries like Sweden and Canada have implemented carbon taxes and have seen significant reductions in greenhouse gas emissions.

What are the potential drawbacks of a carbon tax?

Some drawbacks include potential economic impacts on low-income households and industries, as well as the challenge of setting the right tax rate.