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. 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. Therefore when there is this production of these gases climate disruption causes extreme Weather such as heat waves flooding droughts among others.
Therefore for a carbon tax to be implemented that States should determine the external cost for each ton of greenhouse emission. 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.
The following reasons that have been highlighted below show the benefits of the use of carbon tax.
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. 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. Therefore through these, the consumers will be more aware and be energy efficient because of the increase in the price. When the prices of gasoline and electricity increase, the consumers are forced to switch to other clean energy sources such as solar or wind and in the process of decreasing the production of carbon dioxide or methane. When this happened there will be no production of greenhouse gas emission which in turn will help the atmosphere because there will be no climate destruction.
It is important to note that through carbon tax companies are able to get 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.
Economy what is another importance 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.
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.
