carbon tax

Synonyms

carbon dioxide tax, carbon charge, CO2 tax, energy tax, emission tax, emission charge, emission fee

Definition

A carbon tax is a levy on the carbon content of fossil fuels. Because virtually all of the carbon in fossil fuels is ultimately emitted as carbon dioxide, a carbon tax is equivalent to an emission tax on each unit of CO2- equivalent emissions. An energy tax - a levy on the energy content of fuels - reduces demand for energy and so reduces carbon dioxide emissions from fossil fuel use. An eco-tax is designed to influence human behaviour (specifically economic behaviour) to follow an ecologically benign path. An international carbon/emission/energy tax is a tax imposed on specified sources in participating countries by an international agreement. A harmonised tax commits participating countries to impose a tax at a common rate on the same sources. A tax credit is a reduction of tax in order to stimulate purchasing of or investment in a certain product, like GHG emission reducing technologies. A carbon charge is the same as a carbon tax.(IPPC)