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Introduction
You are perhaps aware of the carbon tax, a tax imposed on those who burn fossil fuels. This tax is levied so that people and corporations reduce their use of these fuels. However, let us understand why the use of fossil fuels should be reduced.
Dangers of Fossil Fuels
These fuels contain carbon, so they release carbon dioxide and methane into the air, which heats the atmosphere when burned. When this keeps happening over time, it leads to extreme weather changes and causes flooding, droughts, storms, and heatwaves. It can also wreak havoc on agriculture and cause great losses to farmers.
Purpose
The purpose of levying a carbon tax is to make those responsible for burning carbon pay for the consequences. The tax also gives visibility to the hidden cost of manufacturing products and offering services. Carbon tax ensures that companies and individuals who burn carbon–including us all–are made to pay for the after-effects caused.
How It Works
The government has to determine the cost per ton of carbon emission. Now, this is problematic because economists and scientists do not readily agree on the methods of arriving at this figure. Globally, the average price is USD 2 per ton. However, the actual cost could be as high as USD 75 by 2030.
Benefits
Imposing a carbon tax pushes up fuel prices and encourages people to look for alternatives, also called green energy. People will also be trying to use less fuel and save money. Companies are constantly trying to find ways to reduce their carbon emissions.
The tax also provides additional income to the government, which can be used for dealing with the consequences of climate change. Many businesses and governments have invested heavily in alternative sources of energy.
Responses of Nations
In 2015, 196 parties signed The Paris Agreement, an international climate change treaty that aims to limit global warming to below 2◦ Celsius through various methods, including a carbon tax.
We can do our bit too–do not waste electricity, and use public transport as much as possible.
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FAQs
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What is a major disadvantage of the carbon tax?
The carbon tax increases the cost of fossil fuels, which are used more by low-income families. So, the poorer sections end up bearing most of the cost of carbon burning.
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Do you think carbon tax alone will help reduce emissions?
No, it must be used in combination with positive measures like subsidies for those who use alternative energy sources, building more public transportation, and increasing energy efficiency standards.
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What is green energy?
It refers to non-fossil fuels: solar, wind, and water power, that are replenishable.
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When was a carbon tax suggested first?
David Wilson, Engineering Professor at MIT, suggested levying a carbon tax in 1973.
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Which country has the highest per-capita carbon footprint?
The US, with 18.3, has the highest per-capita carbon footprint. The desired number is 1.87.
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