carbon tax

/ˈkabən tæks/ (say 'kahbuhn taks)

a tax on the consumption of fossil fuels, as a means towards achieving a reduction in their use.
There are two types of carbon tax. The first is designed to recoup some or all of the costs of managing and repairing the environmental damage caused by such fuels. The second is designed to penalise those industrial activities that emit carbon dioxide as a by-product, with the intent of promoting the use of low-emission energy sources or production methods. Such a tax alters the dynamic of an economy by not treating carbon dioxide as an externality. Since the tax is levied directly on the emitter (whose costs then flow to the customer) with expenses of energy and raw materials at the source of production,  there is a stimulus to industry to substitute affected inputs with more environmentally favourable energy and material sources. A carbon tax is an alternative to an emissions trading scheme as a model of greenhouse gas reduction. Advocates of a tax rather than a trading scheme argue that it provides simplicity, scope and more immediate reduction on the amount of carbon dioxide generated.

Australian English dictionary. 2014.

Look at other dictionaries:

  • carbon tax — UK US noun [C] ► ENVIRONMENT, SOCIAL RESPONSIBILITY, TAX a tax on the use of fossil fuels or on activities that cause carbon dioxide to be released, harming the environment: »Many now argue that a simple carbon tax on each ton of emissions would… …   Financial and business terms

  • carbon tax — carbon .tax n [U and C] a tax on businesses and industries which produce substances with a carbon base, that can damage the environment ▪ carbon taxes on fossil fuels …   Dictionary of contemporary English

  • carbon tax — carbon taxes N COUNT A carbon tax is a tax on the burning of fuels such as coal, gas, and oil. Its aim is to reduce the amount of carbon dioxide released into the atmosphere …   English dictionary

  • carbon tax — noun A tax imposed on industry, and on the users of motor vehicles, to try to limit the amount of carbon being released into the atmosphere from the burning of fossil fuels • • • Main Entry: ↑carbon …   Useful english dictionary

  • carbon tax — carbon ,tax noun count or uncount a tax on vehicles or factories that produce a lot of CARBON EMISSIONS …   Usage of the words and phrases in modern English

  • Carbon tax — Part of a series on Green economics Concepts …   Wikipedia

  • carbon tax — UK / US noun [countable/uncountable] Word forms carbon tax : singular carbon tax plural carbon taxes a tax on vehicles or factories that produce a lot of carbon emissions …   English dictionary

  • carbon tax — car·bon tax loc.s.f.inv. ES ingl. {{wmetafile0}} TS fin. tassa posta sull impiego dei combustibili fossili (carbone, petrolio, gas naturali) allo scopo di limitarne gli effetti inquinanti {{line}} {{/line}} DATA: 1998. ETIMO: comp. di carbon… …   Dizionario italiano

  • carbon tax — noun a tax levied on the use of fossil fuels, so as to discourage the production of the greenhouse gas carbon dioxide …   Wiktionary

  • ˈcarbon ˌtax — noun [C/U] a tax on vehicles or factories that produce a lot of carbon emissions …   Dictionary for writing and speaking English

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