An emissions tax is favored by some economists because it is transparent and easy to implement compared to having to develop a market.

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An emissions tax is straightforward and simple to implement, making it a popular option among economists who favor market-based solutions to environmental problems. It does not require the creation of a complicated market mechanism, as carbon trading or cap and trade would, which can involve setting up price floors and ceilings, monitoring compliance, and determining who gets to own and sell emissions allowances. Instead, an emissions tax sets a price on greenhouse gas emissions directly, providing a clear signal to businesses and consumers that they should internalize the social costs of their activities.

An Emissions Tax Is Favored by Some Economists Because It