By Isabel Verkes
What is the socio-economic impact of carbon emissions? Carbon dioxide and other greenhouse emissions impose a burden on society and future generations, also financially. Most economic transactions today, however, are underestimating the impact of carbon emissions.
In the third part of this four chapter series, Isabel Verkes looks at carbon taxes as an additional mechanism to put a price on carbon emissions. Needless to say, adding new taxes are often unpopular. Yet, under some circumstances, people can directly benefit from carbon taxes. Whether carbon taxes can be effective to price carbon, and drive lower emissions, depends on a variety of factors. This piece gives on overview of when and how carbon taxes will (not) work.