Question

What is a carbon tax? Who will pay for it?

Answer 1

The name carbon tax gives us an idea that the tax is levied on the use of carbon resources. Most of the natural resources are mainly carbon based and are non-renewable, too. The substantial use of carbon resources is related to the increase in environmental pollution.

Complete answer:
Let us see the definition of Carbon tax.
Carbon tax is the fee enforced on the burning of the carbon-based fuels like oil, coal, natural gas, etc. It is calculated on the carbon emission that takes place on the basis of number of employees per hour and the total turnover of the industry.
The idea behind the carbon tax is to reduce the use of fossil fuels by imposing a tax. To save the money on tax the factories would reduce the use of carbon-based fuels and make more use of renewable sources of fuels. We know that combustion of fossil fuels is harming the earth’s climate and destabilizing the temperature.
Carbon taxes are classified into two types:
Emission tax- It is the type of tax that the emitters have to pay for every tonne of greenhouse gas that they release into the atmosphere.
Energy tax- this tax refers to the fee that is directly charged on the commodities that use carbon energy.
The carbon tax is paid by the factory/ industry owner who uses the carbon-based energy for their individual purposes.

Note:
Carbon tax is important because otherwise there is no other way to switch people to use clean energy. If the tax is increased there is monetary benefit to the country and it will eventually motivate the payers to move to non-carbon fuels. The United states of America has not applied the carbon tax law.