A fee that is imposed on a company on burning carbon-based fuel like coal oil gas is referred to as carbon tax. Global warming is created because of the production of carbon dioxide and methane that are produced through the Burning of carbon-rich fuels and therefore through this the atmosphere is heat. 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. When the state wants to determine the town of greenhouse emission they should involve the scientist and economist so that they can agree on the assumption of the use.
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. Solar energy wind energy and hydropower sources are some of the clean energy production that companies can use and it will be good for the environment.
Carbon tax helps to increase the price of gasoline and electricity is another importance of the use of carbon tax. Therefore through these, the consumers will be more aware and be energy efficient because of the increase in the price. Therefore they are able to switch to other energy sources that are cheaper which will help in the reduction of carbon fuel burning. When the consumers turn to this energy-efficient methods they are able to preserve the atmosphere because there will be no climate destruction.
Another importance of carbon tax is that it helps companies to get better alternatives for 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. Constructions of roads school hospitals among others are developed due to the carbon tax that is paid by the companies. 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.