A fee that is imposed on a company on burning carbon-based fuel like coal oil gas is referred to as carbon tax. It is important to note that when the carbon-based fuels are burnt they produce greenhouse gases like carbon dioxide and methane that create global warming by heating the atmosphere . Extreme weathers such as heat waves flooding blizzard’s inject drugs can be caused because of climate disruption that comes from the greenhouses gases that are produced through carbon-rich fuels burning.
When the government wants to implement carbon tax it is important for them to determine the external costs that the greenhouse emission will cost. Scientists and economists firsts they should agree on the user so that this determination can be made.
In this article, we are going to discuss the importance of the use of carbon tax regulation.
Carbon tax helps to reduce emission is one of the important advantages of the use of carbon tax. It is important to note that through carbon tax the companies are able to switch to clean energy that will enable reduction of the production of carbon dioxide or methane into the atmosphere since the company will prefer this clean energy since they are cheaper. It is important to note that other sources that produce clean energy include solar energy wind energy and hydropower sources.
Another essential of a carbon tax is that it will increase the price of gasoline and electricity. Therefore through these, the consumers will be more aware and be energy efficient because of the increase in the price. The reduction of carbon dioxide or methane can also be done through an increase in the price of gasoline and electricity since the consumers will prefer other sources of energy efficiency since they are cheaper. Consumers are able to avoid climate destruction since they will switch to clean energy
A carbon tax can help companies to come up with a better alternative cost-effective ways. It is important to note that through these carbon tax companies can come up with better alternatives ways there for freeing the government from regulations that they may otherwise not even follow.
Economic growth is another benefit of the use of carbon tax. The fees that the companies pay to the government helps it to come up with projects for the country or state such as constructions of roads schools hospitals among others. It is essential to note that through the carbon tax revenue increases as well as development.
For this to be possible some of the Solutions that need to be combined with the carbon tax include ending government subsidies to coal oil and gas companies and increasing energy efficiency standards.