Definition: Carbon Tax

Carbon Tax = "a tax on energy sources that emit carbon dioxide into the atmosphere.

"The purpose of a carbon tax is environmental, to reduce emissions of carbon dioxide and thereby slow global warming. It can be implemented by taxing the burning of fossil fuels--coal, petroleum products such as gasoline and aviation fuel, and natural gas--in proportion to their carbon content." (Wikipedia) [en.wikipedia.org]

The BBC World Service conducted a survey recently that tried to assess how people from all around the world would react to various methods for raising funds for environmental work. Two main things people were asked about were supplemental income taxes for environmental cleanup or a carbon tax on the use of energy. Less than 5% of the surveyed people favorably viewed an income tax system while an overwhelming 61% of people felt that a carbon tax on energy use was fair. The carbon tax also seems fair from a rational point of view, since an income tax system would provide no incentive for people to conserve energy and to reduce the amount of waste they produce. With a carbon tax system, people with green homes and who buy green products would be able to save more money because they would be actively using less energy and resources in their daily lives. More... [www.sundancechannel.com]

Carbon tax is an example of an ecotax [www.sundancechannel.com].
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