The purpose of a carbon tax is to remember the true cost of burning carbon. Those costs are paid by those who suffer from the effects, such as homeowners, farmers, and ultimately the government.
Carbon taxes make sure businesses and consumers pay for the external charges they inflict on society.
Under a carbon tax, the government sets a price that emitters must pay for each ton of conservatory gas emissions they emit.
Companies and consumers will take steps, such as switching fuels or adopting new technologies, to lower their emissions to avoid paying the tax.
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