There has been much debate about imposing a carbon tax on countries importing oil to reduce the carbon footprint world -wide and help protect the environment. What would be the impact of such a tax on the demand for oil and its price?

Question

Quizplus · Accepted Answer

Imposing a carbon tax on countries importing oil would make oil more expensive for consumers and businesses, leading to a decrease in demand. As demand falls, the price of oil would also decrease, assuming supply remains constant.

There Has Been Much Debate About Imposing a Carbon Tax