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A carbon tax is one of many possible policy solutions designed to reduce carbon emissions. It’s a a Pigovian tax – or tax levied with the intention of reducing use (like a cigarette tax). Carbon is present in every hydrocarbon fuel (coal, petroleum, and natural gas) and is released as carbon dioxide (CO2) when they are burnt, which causes global warming.
Carbon taxes offer a potentially cost-effective means of reducing greenhouse gas emissions
Learn more below….