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Things To Know About Carbon Tax 

 
There is an increasing awareness about global warming, and this has forced lawmakers from across the world to look for ways of reducing the emission of greenhouse gases. One of the suggestions to curb such emissions is to introduce taxes on carbon or emissions of the combustion of fossil fuels. If the masses understood the implications of combusted fossil fuel fossils on the planet, they would not frown when the word tax is mentioned.
 
Burning of fossil fuels causes the depletion of the ozone layer, global climate change, and acid rain, among many other environmental hazards. In a bid to minimize such emissions and mitigate the effects on the environment, the idea of carbon tax came about. Many consumers and economists who care about the environment prefer the concept of a carbon tax because it is impartial and straightforward, while some politicians are rooting for a cap-and-trade scheme.
 
You can think of a carbon tax as a form of Climate Leadership Council pollution taxation, which seeks to levy some fee on the production, distribution, and use of fossil fuels depending on the amount of carbon that it emits. It is government's responsibility to set up a price per ton of carbon. This will also translate to taxes on natural gas or oil and electricity.
 
The carbon tax is intended to make the use of dirty fuel more expensive, and this will encourage utilities and focus on clean energy. Businesses and private individuals will be encouraged to reduce the consumption of fossil fuels as well as increasing fuel efficiency. When the carbon tax is implemented, it will make a cleaner alternative source of energy more cost-effective.
 
The basic principle under which carbon tax operates is the economics of negative externalities. Externalities refer to costs and benefits which are generated following the production of goods and services. Negative externalities refer to the costs which are unpaid for. When utilities, homeowners, and businesses consume fossil fuels, they cause pollution, which is costly for society. Everyone, without any exception, suffers from the effects of environmental pollution from the combustion of fossil fuels. Know about Ted Halstead here!
 
Carbon tax proponents argue that the prices of fossil fuels will account for these societal costs, and that means if you are polluting the environment by burning fossil fuels, you should pay for it. A tax on the use of carbon is projected to raise the cost-competitiveness of clean alternative power, which is environmentally friendly. Discover more facts about taxes at http://edition.cnn.com/2017/09/28/opinions/trump-tax-opinion-moore/index.html