A carbon tax placed on a fossil fuel
A) is a pollution tax based on the carbon content of the fuel.
B) is a form of marketable pollution permit.
C) is often used in conjunction with command-and-control carbon policies.
D) will not change the price of the fossil fuel taxed.

Question

Quizplus · Accepted Answer

A carbon tax is a pollution tax based on the amount of carbon dioxide (or other greenhouse gases) that is emitted when a fossil fuel is burned. The tax is typically applied to the producer or importer of the fuel, and is meant to discourage the use of fossil fuels and encourage the use of cleaner energy sources. The tax can also raise revenue for governments to invest in renewable energy and other environmental initiatives.

A Carbon Tax Placed on a Fossil Fuel