Knowra Carbon tax Carbon tax A carbon tax charges for carbon dioxide emissions or the fossil fuels that produce them, making emitters bear some of the climate damage caused by their emissions.
Pigouvian tax : A tax designed to make people account for costs their actions impose on others. A carbon tax applies this principle to climate damages from greenhouse-gas emissions.
Emissions trading : A policy that sets an emissions limit and allows regulated parties to trade permits. It fixes the total quantity of covered emissions, while a tax fixes their price.
Carbon tax in Sweden : Sweden's national tax on carbon dioxide emissions, introduced in 1991 and later raised substantially. Its long-running design shows how a tax can coexist with other climate policies.
Climate justice : An approach to climate change that focuses on the fair distribution of its causes, impacts, and remedies. A tax's fairness depends on who pays, who benefits, and how revenue is used.
Social cost of carbon : An estimate of the economic damage caused by emitting one additional tonne of carbon dioxide. It provides one benchmark for setting a tax equal to climate damages.
Carbon pricing : Policies that assign a monetary cost to greenhouse-gas emissions. Carbon taxes are one of the two main ways governments put a price on emissions.
Command-and-control regulation : Environmental rules that directly require or prohibit specified technologies, practices, or pollution levels. Unlike a carbon tax, these rules prescribe actions rather than charging for each unit emitted.
Carbon tax in British Columbia : A provincial carbon tax introduced in British Columbia in 2008 and initially designed to be revenue-neutral. Its early revenue recycling made it a prominent example of tax reductions paired with carbon pricing.
Distributional effects of carbon pricing : The differences in costs and benefits of carbon-pricing policies across income groups and communities. Energy expenses can take a larger income share from poorer households unless policy offsets them.
Carbon price floor : A minimum carbon price maintained through taxes, permit auctions, or coordinated policy. A floor can prevent low market prices from weakening incentives when taxes alone do not apply.
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