tax implemented to curb the carbon emission of cars and pollutants by factories
Carbon tax A carbon tax is a tax levied on the carbon content of fuels.[1] It is a form of carbon pricing. Revenue obtained via the tax is however not always used to compensate the carbon emissions on which the tax is levied (see implementation). Carbon is present in every hydrocarbon fuel (coal, petroleum, and natural gas) and converted to carbon dioxide (CO 2) and other products when combusted. In contrast, non-combustion energy sources—wind, sunlight, geothermal, hydropower, and nuclear—do not convert hydrocarbons to CO 2. CO 2 is a heat-trapping "greenhouse" gas[2] which represents a negative externality on the climate system (see scientific opinion on global warming).[2][3][4] Since GHG emissions caused by the combustion of fossil fuels are closely related to the carbon content of the respective fuels, a tax on these emissions can be levied by taxing the carbon content of fossil fuels at any point in the product cycle of the fuel.[5]