what is carbon taxation
Carbon taxation is a policy tool aimed at curbing the emission of greenhouse gases, particularly carbon dioxide, into the atmosphere. The basic idea is to put a price on carbon by taxing the carbon content of fossil fuels. This encourages individuals and businesses to reduce their carbon footprint by using cleaner and more sustainable energy sources.
In simple terms, carbon taxation works by making it more expensive to use fossil fuels, which in turn incentivizes the adoption of greener alternatives. The revenue generated from carbon taxes can be used to fund environmental initiatives, renewable energy projects, or returned to citizens through rebates.
The goal of carbon taxation is to internalize the external costs of carbon emissions, such as climate change and environmental degradation, into the market price of fossil fuels. By doing so, it encourages a shift towards cleaner energy practices and helps address the global challenge of climate change.