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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Some proposed carbon taxes tax fuels being taken out of the ground based on how much CO2 it would produce. Coal produces a lot of CO2 per weight, while natural gas produces less.
Taxing these fuels makes them more expensive, so the free market will prioritize cheaper sources of energy like wind and solar that are not taxed.
The carbon tax is collected at the pump from consumers. The tax collected is remitted by the gas company to the government, along with any fees and penalties the gas company for its own emissions.
Its a fee to encourage less fuel usage: taking public transit, buying more efficient vehicles. _But wait, the government is giving the tax collected from consumers back in the form of the carbon tax credit on your income taxes?_ Yes, but it still makes you think about it because while after your refund comes back you’re net zero gain/loss, but from when you buy gas until you get your refund you’re out that money. It still encourages you to use less fuel.
It also encourages manufacturers and producers and commercial transport companies to use less fuel too, and they’re perhaps the bigger contributor.
“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.
It does not reduce emissions but that money is invested someway in order to reduce the damages done by carbon..
If you buy a vehicle that gets better mileage, or is emission free, you pay less tax.
http://theconversation.com/heres-what-the-carbon-tax-means-for-you-114671
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