Live revision! Join us for our free exam revision livestreams Watch now


Carbon Tax

A tax on carbon increases the private cost of emitting carbon and in theory, this will cause output to contract towards the social optimum. It will raise tax revenues that might be used by the government to fund other projects or use as a rebate to those affected (e.g. consumers).

A revision video on carbon taxes can be found here

© 2002-2024 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.