What is the purpose of carbon tax?

What is the purpose of carbon tax?

The purpose of a carbon tax is to reduce greenhouse gas emissions by making fossil fuels more expensive.

How does it actually work in practice?

In practice, a carbon tax is levied on the carbon content of fuels, encouraging businesses and consumers to reduce their carbon footprint.

What are the benefits of implementing a carbon tax?

Benefits include reduced emissions, promotion of renewable energy, and generating revenue for government initiatives.

Are there any criticisms of carbon tax?

Yes, critics argue it can disproportionately affect low-income households and may not be effective without global cooperation.

What alternatives exist to carbon tax?

Alternatives include cap-and-trade systems, renewable energy subsidies, and direct regulations on emissions.