Carbon Tax Law and Legal Definition
A carbon tax is an environmental tax that is levied on the carbon content of fuels. A carbon tax can be implemented by taxing the burning of fossil fuels, petroleum products such as gasoline and aviation fuel, and natural gas in proportion to their carbon content. Accordingly, a carbon tax increases the competitiveness of non-carbon technologies compared to the traditional burning of fossil fuels, thus helping to protect the environment while raising revenues.
