Carbon Taxation: A Global Scenario

Reducing the amount of fossil fuel combustion is essential to lowering the concentration of greenhouse gases in the earth's atmosphere that trap heat. By discouraging the use of fossil fuels and promoting the switch to cleaner fuels, a carbon tax might reduce emissions of carbon dioxide (CO2), the most common greenhouse gas. Carbon taxes can address climate change by lowering greenhouse gas emissions, but they can also have more immediate positive effects on the environment and human health, especially by lowering the number of fatalities brought on by local air pollution. Additionally, they have the potential to generate large sums of money for governments, which they may employ to offset the negative economic effects of rising fuel costs. The present study focuses on carbon tax policy implantation in different countries. It also studies the share of CO2 emission covered by carbon tax and ETS both globally. ANOVA has been used to test the hypothesis. It was discovered that over time, there was no discernible change in the CO2 emissions that each country's carbon price and ETS covered. This demonstrates that the nations could have comparable goals for reducing emissions or be employing comparable strategies to meet these goals.