Can someone explain how carbon taxes offset the negative environmental impact fossil fuels have on our environment?
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Carbon emissions impact all of us due to climate change reducing farming output, increasing natural disasters, creating climate refugees, etc. This has a real-world economic cost ($$$) associated with it. But carbon producers don’t experience those costs, we do, resulting in market failure.
The obvious solution, universally supported by economists worldwide, is that we simply charge carbon producers a carbon tax proportional to the economic cost of climate change (per ton of CO2 emitted). From there, the free market would fix itself, since then the TRUE cost of carbon emissions would finally be factored in.
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