Pollution is a big problem in the USA. It can cause many problems with human’s health, environment poverty, global warming, ozone layer depletion, infertile land. But what causes all this are the results from the burning of fossil fuels like coal, oil, natural gas, gasoline.
Carbon tax, which makes people pay social cost of pollution. The idea of tax is to make consumers and producers pay the full social cost of producing pollution. What this means is that the final price of the good should include the external cost and not just the private cost, the tax should equal the external cost. The consumers pay will be the social cost.
Advantages; the government raises large revenue, which could be used to finance other pollution reduction systems,
Carbon tax, which makes people pay social cost of pollution. The idea of tax is to make consumers and producers pay the full social cost of producing pollution. What this means is that the final price of the good should include the external cost and not just the private cost, the tax should equal the external cost. The consumers pay will be the social cost.
Advantages; the government raises large revenue, which could be used to finance other pollution reduction systems,