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Question : The concept of "carbon pricing" involves:

Option 1: Imposing a tax on carbon emissions

Option 2: Subsidizing renewable energy projects

Option 3: Regulating deforestation activities

Option 4: Promoting sustainable agriculture practices


Team Careers360 9th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: Imposing a tax on carbon emissions


Solution : The correct answer is (A) Imposing a tax on carbon emissions.

The concept of carbon pricing involves putting a financial cost on carbon dioxide (CO2) emissions and other greenhouse gases to encourage the reduction of emissions and mitigate climate change. The most common forms of carbon pricing are carbon taxes and emissions trading systems (also known as cap-and-trade).

Imposing a tax on carbon emissions: This approach involves setting a price per ton of CO2 emitted and levying a tax on entities that emit carbon. The tax incentivizes businesses and individuals to reduce their carbon emissions by making it more costly to pollute. The revenue generated from the carbon tax can be used for various purposes, such as funding renewable energy projects or offsetting the costs for low-income households.

In summary, the concept of carbon pricing involves imposing a tax on carbon emissions to create a financial disincentive for emitting greenhouse gases and encourage the transition to low-carbon alternatives.

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