Carbon Tax: The Greenhouse Effect

With every second that passes by we deal with an increase in the amount of carbon dioxide in our atmosphere. The greenhouse effect has become a consensus among scientist around the world, and the need to control this issue has garnered lots of talks. The United States is a country in need of having to analyze this situation very carefully as it falls under the second highest producer of carbon dioxide. Although this is a problem in which all countries should unify to combat it effectively; the U.S. should take initiative and begin implementing ways to control the amount of carbon dioxide they emit into the atmosphere. One way the United States can do this is by imposing a carbon tax. A carbon tax or also known as a CO2 tax is a fee placed on those who use fossil fuels and emit carbon into the atmosphere. It is essentially a form of pricing the amount carbon being used. The burning or combustion of fossil fuels (coal, oil, and natural gas) release carbon into our atmosphere and contribute to …show more content…
Boulder, Colorado has a utility tax in place in which residents are taxed based on their consumption of electricity; in California, they have established a cap and trade program. Cap and trade are similar to a carbon tax where both try to set a price on carbon; however, cap and trade works by putting a limit on the amount of carbon allowed to be burned. In cap and trade, permits are given out to companies and they have the option to keep it and use it for their benefit or to sell it to other companies willing to pay a hefty price. This is considered a less effective method than a carbon tax. Having had these states take a head start and enact laws to reduce carbon helps analyze the results and gives us a starting point of where to set the carbon price. Another tool available is the prices set by other countries like Canada and Australia. Below you see the different carbon prices set by