If the U.S. were to place a carbon tax on fossil fuels, we can expect
A) the price of fuel oil to decrease.
B) the price of fuel oil to increase.
C) no change in the price of fuel oil.
D) an increase in demand for fuel oil.

Question

Quizplus · Accepted Answer

Placing a carbon tax on fossil fuels would increase their production costs, which would then be passed on to consumers in the form of higher prices at the pump. This would incentivize consumers to use less fossil fuels and pursue alternative energy sources, but it would also lead to higher prices for those who continue to use them.

If the US Were to Place a Carbon Tax on Fossil Fuels