Question

(1) Given the fact that carbon tax of $75 a ton would raise electricity prices up to 50% and gas prices by 15-20% (as well as raising costs of production for most businesses), would you be in favor of such a tax? Explain why or why not.

Answer 1

the reason why the carbon tax is an immediate necessity in the current situation is due to the ever worsening of the earth's climate. the fact that without any forms of control or laws to limit the production of the pollutants and the carbon dioxide, the firms have little or no incentive to reduce their carbon footprints. furthermore with the carbon taxes and other laws in place, the firms would be forced to innovate to find new less polluting ways to produce which other wise would not take place. hence we need to exert some sort of control to prevent the firms from harming the environment, and improve their production process