Pollution isn’t free. Eventually, the country (and world) will have to pay for it. The Carbon Tax funds projects that cut down on carbon emissions, like solar power, wind turbines, and greener vehicles. Scientists calculate how much carbon a type of fuel emits per metric ton and then charges consumers accordingly.

How Carbon Tax Works

The carbon tax is a type of pollution tax. It’s an indirect tax, or a tax at transaction, rather than a direct tax, or a tax on income. The government decides how much you pay based on the amount of carbon your fuel produces when it’s burned. The tax is added to the cost of oil, natural gas, or electricity.

Carbon emissions hurt the environment. By making them more expensive, lawmakers hope to encourage businesses and individuals to use less fuel. The extra funds are used to support environmental efforts and to make alternative energy sources cheaper.

Carbon Tax For A Greener Future

82% of America’s greenhouse gas emissions come from burning coal, oil, and natural gas. Carbon taxes offer a cost-effective way to reduce greenhouse gas production. Carbon dioxide heats up the atmosphere.

This year, the planet will burn a year’s worth of carbon by August. We don’t have nearly enough trees and carbon-munching plants to process all the carbon we release into the atmosphere. The only option is to burn less. Taxing helps.

A Convenient Tweak to the Economy

The carbon tax is a convenient way to pressure individuals and businesses, without significantly altering the economy. Financial incentive is powerful. Everyone cares about saving money; fewer care about saving the planet. A number of countries have carbon taxes in place to put a dent in pollution. Most countries tax directly on motor vehicles rather than directly on carbon emissions.

Unfortunately, taxes alone won’t be enough to save the planet. In the U.S., government subsidies to oil and natural gas still cost the government $25 million a year. Applying those funds to eco-friendly alternatives would make wind and solar power more affordable. The carbon tax is only a small measure to take on the global pollution crisis.