The effect of the carbon tax to minimize emission

Abstract

Carbon emission refers to the release of carbon gas into the atmosphere. As can be understood from the definition, carbon emissions mainly cause air pollution. Polluted air also threatens the health of living things. As can be seen, carbon emission is a problem that needs to be solved urgently. In this context, many countries are trying to take measures to reduce carbon emissions. Carbon emissions do not only cause air pollution. For example, carbon emissions cause significant problems in the country’s economy. First, because of the increase in people getting sick due to air pollution, serious job losses occur in the country. This situation leads to a decrease in the production volume of the country. In addition, the profitability of firms with reduced workforce is likely to decline. As a result, the country’s economic growth will be negatively affected. In addition, the increase in the number of patients in the country because of carbon emissions will increase the health expenditures of the country. Finally, carbon emissions cause a decrease in foreign investments in the country. It is obvious that air pollution caused by carbon emissions reduces the quality of life in the country. In this context, there has been an increase in sensitivity to environmental factors worldwide, especially in recent years. This situation makes the carbon emission problem more important. The amount of carbon emission has started to affect the image of countries. In this framework, foreign investors have started to pay attention to environmental pollution issues while choosing the country they will invest in. As can be understood from this, it is obvious that countries that do not take measures to address the carbon emission problem will experience a decrease in their foreign investments soon. Therefore, it is necessary to avoid the carbon emission problem. Carbon emissions can be prevented by legal regulations and sanctions. Sanctions may be imposed on companies that cause carbon emissions. Additional tax may be imposed on nonrenewable energies. Since these types of energy pollute the air with carbon emissions, it may be possible to collect a carbon tax. In this way, the cost advantage of nonrenewable energy types will disappear.