What are the effects of implementing a carbon tax?

What are the effects of implementing a carbon tax?

Implementing a carbon tax can lead to reduced greenhouse gas emissions, encourage cleaner energy sources, and generate revenue for governments.

How does it affect businesses?

Businesses may face higher costs for carbon-intensive activities, which can incentivize them to innovate and adopt greener practices.

What about its impact on consumers?

Consumers might see higher prices for goods and services that rely on fossil fuels, but they could also benefit from cleaner air and a healthier environment.

Are there any negative consequences?

Yes, potential negative consequences include economic strain on low-income households and possible job losses in certain sectors.

How do different countries implement carbon taxes?

Countries implement carbon taxes in various ways, such as setting a fixed price per ton of emissions or using a cap-and-trade system.