It seems to me it just makes people pay more tax and doesn’t actually help climate change. I researched the Canadian carbon tax btw
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Well it’s economics.
Pollution in the air is dubbed a *negative externality.* That meaning that the production, or the use, of fossil fuels damages a 3rd party. That 3rd party being *us* seeing as we’re breathing in that polluted air. A negative externality is only present in the face of overproduction or overconsumption. In this case, they’ve initiated a tax on those firms, and on people, to compensate for that overabundance of carbon. An effective tax in the face of a negative externality should incentivize firms and people to produce *less* of what *specifically* is being taxed, the increased cost of producing more with fossil fuels will prevent firms from producing more (this tax seems to be aimed more towards firms, which is businesses), which should decrease carbon levels, the government hopes that the supply curve of fossil fuels shifts to the left. *Which means less.*
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