Can 'Carbon Tax' solve climate change?

A carbon tax is a fee that a government imposes on any company that burns fossil fuels.

The most widely discussed are coal, oil, gasoline, and natural gas. When these carbon-rich fuels are burned, they produce greenhouse gases. These gases, such as carbon dioxide and methane, create global warming by heating the atmosphere. The resultant climate disruption causes extreme weather such as heat waves, flooding, blizzards, and droughts.

Purpose

The purpose of a carbon tax is to reflect the true cost of burning carbon. Those costs are borne by those who suffer from the effects, such as homeowners, farmers, and ultimately the government. Carbon taxes make sure companies and consumers pay for the external costs they impose on society. It is a Pigouvian tax( a government cost on any activity that creates socially harmful externalities) since it returns the cost of global warming to their producers.

How It Works

Pros

Cons

Examples of Where Carbon Taxes Are Used in the World

Carbon Tax Plus