Carbon dioxide is one of the greenhouse gases that have continued to increase due to human activities such as industrial production and burning of fossil fuels. According to EPA (2017), transportation industry contributes 27% carbon dioxide emissions27% and industries 21%, Electricity 29% and other human activities. At over 9040 metric tons, China is one of the highest emitters of carbon dioxide followed by the U.S with over 4997 million tons (Hassett, Mathur & Metcalf, 2007). Because of the continuous increase in carbon emissions combined with its contribution to climate change, governments, and international organizations have continued to ratify different environmental policies to counter the problem. The carbon tax is one of the pollution taxes that were established as a strategy to address the issue of emissions of carbon dioxide. Through a calculation process, the carbon tax ensures that companies pay the price for the level of emissions to compensate for the negative externality.
This paper analyzes the carbon tax environmental policy, its objectives and alternative……………………..
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