If we want to know how much something costs, we look at the price tag!
But what if something doesn’t have a price tag?
Take carbon emissions, for example. Emitting carbon comes at a cost to everyone, but without a carbon tax, we don’t get to truly understand this cost. Sarah Lazarovic explains:
We pay for all the other components of a good or service (labour, materials, marketing!). So why don’t we pay for the emissions produced? Especially when these emissions will literally hang over us forever. The only solution is to put a price on it. Charge industry and people for the pollution they emit.
The carbon tax provides incentive for families and businesses to reduce their emissions, while the carbon rebate rewards those who are limiting their carbon use and helping protect the environment.
You can read more on the importance of the carbon tax from Sarah here.