Answer:
A carbon tax aims to make individuals and firms pay the full social cost of carbon pollution. In theory, the tax will reduce pollution and encourage more environmentally friendly alternatives. However, critics argue a tax on carbon will increase costs for business and reduce levels of investment and economic growth.
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The purpose of a carbon tax
The purpose of a carbon tax is to internalise this externality. What this means is that the final price of the good should include the external costs and not just the private cost. It is similar to the ‘polluter pays principle.‘ – which was incorporated into international law at the 1992 Rio Summit. It simply means those who cause environmental costs should be made to pay the full social cost of their actions.
Diagram to show welfare loss of a negative externality
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This diagram shows that in a free market (without any tax), we get overconsumption (Q1) of carbon, leading to a welfare loss to society.
Social efficiency with Carbon Tax
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Explanation:
Sunday, July 20, marked 45 years since the United States put the first two astronauts safely on the moon. The cost for the Mercury, Gemini and Apollo programs was more than $25 billion at the time more like $110 billion in today’s world. The ensuing U.S. space efforts have cost an additional $196 billion for the shuttle and $50 billion for the space station. NASA’s total inflation-adjusted costs have been more than $900 billion since its creation in 1958 through 2014 (more than $16 billion per year). Looking back, have we gotten our money’s worth from the investment?
IamSugarBee
China has become a world leader in production of farm products including rice, wheat, potatoes, sorghum, peanuts, tea millet, barley, cotton, oilseed and soybeans. Initially going back eons, first the use of cast iron tools and beasts of burden were introduced in agriculture. Now, while communes have beendisbanded, and individual farming has been restored, there are quotas for the individual farmers and also some state farms. In modern times, mechanization has been promoted and state sponsored projects like the Three Gorges Dam has provided significant irrigation.
C. The aral sea is known to be so severely damaged due to management that only a little part of it is saved and can be seen nowadays. However, Kazakhstan is doing its best to save the Northern part of the sea. Therefore, the water level of the lake had risen by 12 meters, and fishes are found swimming once again in the sea.
