<P> A carbon tax is a tax levied on the carbon content of fuels . 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 ) and other products when combusted . In contrast , non-combustion energy sources -- wind , sunlight , geothermal , hydropower , and nuclear -- do not convert hydrocarbons to CO . CO is a heat - trapping `` greenhouse '' gas which represents a negative externality on the climate system ( see scientific opinion on global warming ) . 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 . </P>
<P> A carbon tax is a tax levied on the carbon content of fuels . 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 ) and other products when combusted . In contrast , non-combustion energy sources -- wind , sunlight , geothermal , hydropower , and nuclear -- do not convert hydrocarbons to CO . CO is a heat - trapping `` greenhouse '' gas which represents a negative externality on the climate system ( see scientific opinion on global warming ) . 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 . </P>
tax implemented to curb the carbon emission of cars and pollutants by factories
tax implemented to curb the carbon emission of cars and pollutants by factories
carbon tax
carbon tax