“Carbon tax” can refer to a couple different things, but assuming you’re talking about a tax levied mainly on consumer gas purchases, by making it more expensive to run gas vehicles (especially less efficient trucks, SUVs, etc.), the tax encourages people to consider alternative transportation (bicycles, buses, trains, etc) and consider buying more efficient vehicles (hybrids, electric cars, or even just a smaller car) next time they need to buy a car. These relatively small changes, made in large numbers, can quickly add up to sizeable emissions reductions.
For the wealthier, carbon taxes can also affect operating costs for aircraft, especially private jets.
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