Carbon Tax
Definition
A Pigouvian tax on greenhouse-gas emissions. Internalizes the social cost of climate change into the prices of fuels and goods.
Example
Sweden's carbon tax, in place since 1991, exceeds $120 per tonne of CO₂.
A Pigouvian tax on greenhouse-gas emissions. Internalizes the social cost of climate change into the prices of fuels and goods.
Sweden's carbon tax, in place since 1991, exceeds $120 per tonne of CO₂.