A carbon tax is an amount of money that the government imposes on a company because of its practices on the burning of carbon-based fuel such as Coal, Oil, and Gas. 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 . Climate disruption can be caused because of the production of greenhouse gases such as methane and carbon dioxide which causes extreme weather such as heat waves flooding droughts and blizzards.
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 when the government uses carbon tax it will reduce the emission of methane or carbon dioxide since companies will prefer clean energy since they are cheaper than the production of which carbon fuels. It is important to note that other sources that produce clean energy include solar energy wind energy and hydropower sources.
Carbon tax helps to increase the price of gasoline and electricity is another importance of the use of carbon tax. The consumers can be able to be more efficient especially of energy because of the increase in 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. Instead of the government regulating the company’s market economies will be freed since the companies will come up with other alternative ways.
Economic growth is another benefit of the use of carbon tax. Constructions of roads school hospitals among others are developed due to the carbon tax that is paid by the companies. Development is possible when there is carbon tax and also the revenue of the States increases.
So that to enable carbon tax to be a plus it is essential for the government to increase the energy efficiency standards and end its subsidies to coal Oil and Gas.