What is a carbon tax?
A) A policy that implements a higher tax on gasoline and other fossil fuels to curb their use.
B) A policy that requires industries to pay taxes on emissions that go beyond an established yearly quota.
C) A tax placed on oil companies to fund the development of renewable energy sources.
D) A proposed plan to monitor the carbon emissions of individual households, much like electricity meters, and adjust property taxes higher with higher emissions.

Question

Quizplus · Accepted Answer

A carbon tax is a policy that involves placing a higher tax on fossil fuels such as gasoline, coal, and oil. The aim is to discourage their use, incentivize the transition to cleaner alternatives, and reduce carbon emissions. The increased cost of fossil fuels can also spur investment in renewable energy sources.

What Is a Carbon Tax